U.S. stocks React to Moody’s downgrade and Tax Bill
U.S.stocks saw minimal movement on Monday. Investors were responding to Moody’s Ratings downgrading U.S. debt from triple-A to AA1. the downgrade was due to “large fiscal deficits” and rising interest costs.
The S&P 500 and Nasdaq Composite saw slight increases.The Dow jones Industrial Average rose by 0.3%, partly due to UnitedHealth group’s rebound. Meanwhile, the House Budget Committee approved President Trump’s tax-and-spending plan. This plan extends tax cuts and boosts spending, likely increasing federal deficits.
Interest rates fluctuated. The 10-year Treasury yield hit 4.56%, its highest in over a month, before settling at 4.46%. The dollar weakened, and gold prices rose to $3,235 an ounce.
Tech stocks were mixed. Tesla and Apple saw declines, while Microsoft and Amazon edged higher. Bitcoin surged to $105,400, boosting Strategy shares by 3%.
global markets were also mixed. European stocks rose slightly, while Asia saw losses. The European Union lowered its growth outlook, and Diageo forecast a $150 million hit from tariffs.
JPMorgan CEO Jamie Dimon warned about the economic impact of tariffs. Fed officials indicated no immediate interest rate changes due to ongoing uncertainty.
