FX.co ★ US Stocks Turn Positive

U.S. equities recouped earlier declines on Monday, with the S&P 500 closing up by 0.1% after initially dropping 1.1%, as Treasury yields eased from their peaks. The Dow Jones Industrial Average gained 137 points, while the Nasdaq posted slight gains as investors processed the impact of Moody's recent downgrade of the U.S. credit rating to Aa1. The downgrade was attributed to increasing deficits and refinancing risks. This drove the 10-year Treasury yield close to 4.5% and the 30-year yield above 5%, levels that had historically exerted pressure on equities. Treasury Secretary Scott Bessent minimized the significance of the downgrade and encouraged trade partners to participate during the ongoing 90-day tariff moratorium. Meanwhile, President Trump continued to pressure businesses such as Walmart to absorb additional tariff costs. The energy, consumer discretionary, and technology sectors underperformed, while the healthcare, industrial, and utilities sectors helped to mitigate broader market losses. Significant companies like Apple and Tesla saw declines of 1.2% and 2.2%, respectively, while UnitedHealth experienced a substantial increase of 8.2%, contributing to the recovery from this year's substantial selloff.