U.S. stocks pulled back Tuesday morning as Wall Street recalibrated expectations on growth and inflation amid rising fiscal risks tied to President Donald Trump's sweeping tax proposal.

The S&P 500 declined 0.4% to 5,935, potentially ending its six-day rally, while tech shares showed parallel losses. Small-cap equities held their ground, with the Russell 2000 trading flat.

Tensions are mounting in the U.S. House of Representatives, where lawmakers are locked in heated debates over Trump's proposed "One Big Beautiful Bill." The bill seeks to extend 2017 tax cuts, expand exemptions and overhaul federal spending, effectively tying tax relief to a reshaping of government priorities.

Trump has personally urged GOP lawmakers to back the bill, which he considers central to his second-term agenda.

“Alternative to not passing tax bill is massive tax hikes,” Trump said on Tuesday.

Markets responded swiftly to the possibility of higher long-term government borrowing. The yield on the 30-year Treasury note rose seven basis points to 4.98%, a level not seen since March. As a result, the iShares 20+ Year Treasury Bond ETF TLT fell 0.9%.

Despite rising yields, gold rallied sharply by 1.8% to $3,280 per ounce, reversing nearly all of last week's losses. The safe-haven demand may reflect investor concern over mounting deficits and inflationary spillovers.

In energy markets, Henry Hub natural gas prices spiked over 9% to $3.39 per million British thermal units. Traders are betting on a demand rebound in case of an early summer heatwave, which could sharply increase air conditioning usage.

Meanwhile, Bitcoin BTC/USD eased 0.4% to $105,000.

Tuesday’s Performance In Major U.S., Indices, ETFs

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY edged 0.4% down to $592.44.
• The SPDR Dow Jones Industrial Average DIA eased 0.3% to $426.57.
• The tech-heavy Invesco QQQ Trust Series QQQ fell 0.5% to $519.28.
• The iShares Russell 2000 ETF IWM inched 0.11% up to $209.20.
• The Utilities Select Sector SPDR Fund XLY was down 0.032%; the Real Estate Select Sector SPDR Fund XLRE lagged, down 0.8%.

Tuesday’s Stock Movers

• Microsoft Corp. MSFT slipped 0.5%, even as Goldman Sachs lifted its price target from $480 to $550.
• Amer Sports Inc. AS soared 17% in reaction to quarterly earnings.
• Home Depot Inc. HD inched 0.5% after marginally missing Street’s estimates.
• Stocks slated to report earnings after the close include Palo Alto Networks Inc. PANW and Keysight Technologies Inc. KEYS
  
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