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Dow up 0.43%, S&P 500 up 0.48%, Nasdaq up 0.88%

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Snowflake jumps after raising product revenue outlook

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Alphabet hits nearly three-month high

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Solar stocks fall on fears of subsidies ending

(Updates to 3 PM ET)

By Chibuike Oguh

NEW YORK, May 22 (Reuters) -

U.S. stocks rose on Thursday, erasing initial declines, as

Treasury yields eased off recent highs after the House of

Representatives passed U.S. President Donald Trump's tax and

spending bill.

Recent concerns about the U.S. deficit have pushed up

Treasury yields and pressured stocks, but longer-dated yields

fell on Thursday, allowing stocks to take a breather.

The benchmark U.S. 10-year note yield fell 5

basis points to 4.547%, after hitting its highest since

February.

All three main stock indexes rose in choppy trading.

They had posted their biggest single-day percentage drops in a

month on Wednesday as Treasury yields spiked on U.S. debt

worries.

The Republican-controlled House

voted

by a slim margin to pass the bill, which would fulfill many

of Trump's campaign pledges to his political base, but will

increase the $36.2 trillion U.S. debt pile by $3.8 trillion over

the next decade, according to the nonpartisan Congressional

Budget Office.

Investors are also weighing the impact of Trump's

tariffs on U.S. imports, including on consumer prices.

"The problem today was the tax bill, which appears to

have passed," said George Young, partner and portfolio manager

at Villere & Co in New Orleans. "But we are thinking about

bigger potential problems and the two main things on the table

are tariffs and interest rates."

As of 3:22 p.m. ET, the Dow Jones Industrial Average

rose 179.64 points, or 0.43%, to 42,040.08, the S&P 500

gained 27.83 points, or 0.48%, at 5,872.44 and the Nasdaq

Composite advanced 165.88 points, or 0.88%, to

19,038.52.

"The market hates uncertainty and we've still got this

overhang of the tariffs and the bond market, which is totally

apolitical and totally international," Young added.

Six of the S&P 500's 11 subsectors gained, including

consumer discretionary, communication services and technology

stocks. Utilities and healthcare stocks were the biggest losers.

Megacap growth stocks, including Nvidia ( NVDA ), Amazon ( AMZN )

and Tesla, rose.

Alphabet

was up 2.4%, after touching a nearly three-month

high.

Snowflake jumped more than 12% after the cloud

computing firm raised its fiscal 2026 product revenue forecast.

Analog Devices ( ADI ) fell 4% despite the semiconductor

manufacturer beating Wall Street estimates for quarterly

results.

Shares of solar energy companies including First Solar ( FSLR )

fell more than 5% as Trump's tax bill is expected to

end a number of green-energy subsidies.

Advancing issues outnumbered decliners by a 1.13-to-1 ratio

on the NYSE. There were 61 new highs and 93 new lows on the

NYSE.

The S&P 500 posted 3 new 52-week highs and nine new lows

while the Nasdaq Composite recorded 46 new highs and 102 new

lows.