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Russian (RU) Mon, May 19, 2025, 12:11 PM 2 min read
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US stocks trimmed losses on Monday as Wall Street shrugged off Moody's downgrade of the US credit rating and investors digested developments in President Trump's tariff salvos.
The Dow Jones Industrial Average (^DJI) edged up 0.4%. The S&P 500 (^GSPC) gained 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) erased losses of more than 1% to rise above the flatline.
DJI - Delayed Quote USD
As of 1:19:16 PM EDT. Market Open.
^DJI ^GSPC ^XITK-IV
Moody’s cut the US government’s long-term credit rating from AAA to AA1 late Friday, citing escalating deficits and the increasing burden of refinancing US debt amid elevated interest rates. The downgrade brings Moody’s in line with Fitch and S&P, which previously stripped the US of its top-tier rating.
Stocks took a bearish tone following their recent bullish run, with the bumpy progress of the Republican tax-and-spend bill in high focus. Meanwhile, longer-dated Treasury yields climbed. The benchmark 10-year yield (^TNX) rose to around 4.48%, and the 30-year equivalent (^TYX) broke above 5% — a level not seen since late 2023.
On the tariffs front, Treasury Secretary Scott Bessent warned countries that their imports will return to facing "Liberation Day" hikes if they don't negotiate deals "in good faith" during the 90-day pause. He added that the US is focused on striking deals with 18 "important" trading partners, speaking in a Sunday interview with CNN.
Read more: The latest on Trump's tariffs
Trump himself provided a broadside at US retail giant Walmart (WMT) on social media, urging the company to "eat the tariffs." It represented the latest pushback from the president against companies showing consumers the cost of his economic moves, after a brief tit-for-tat last month with Amazon (AMZN).
This week’s calendar is light on scheduled economic announcements, and the market is monitoring manufacturing data and initial jobless claims.
On the earnings front, with many of the heavy-hitters already reporting for the quarter, attention will shift to key names in retail and tech. Target (TGT), Home Depot (HD), and Workday (WDAY) are all slated to report later in the week.
LIVE 18 updates
Moody's downgrade rattles stocks but not Republicans pushing Trump's 'big beautiful bill'
Yahoo Finance's Ben Werschkul reports:
Read more here.
Microsoft goes all in on AI agents at annual Build conference
Yahoo Finance's Dan Howley reports:
Read more here.
Wall Street says 'buy the dip' after Moody's credit downgrade
Yahoo Finance's Josh Schafer reports:
Read more here.
Tesla stock is down to start the week. A new Model Y rival in China could be why.
Yahoo Finance's Pras Subramanian reports:
Read more here.
Nvidia stock wavers as market turmoil eclipses AI chip announcements
Yahoo Finance's Laura Bratton reports:
Read more here.
Apple, Alibaba decline on report White House concerned about AI deal
Shares of Apple (AAPL) and Alibaba (BABA) were down on Monday following a New York Times report stating that the Trump administration is concerned about a deal between the two companies that would make the Chinese company's artificial intelligence available on iPhones in China.
The report states White House officials and some members of Congress are concerned the recent agreement, which was confirmed by Alibaba, would help accelerate China's artificial intelligence capabilities.
On Monday, both Apple and Baba stock dropped roughly 2% amid an overall market retreat.
Coinbase stock officially joins S&P 500, cementing milestone for company and crypto industry
Coinbase (COIN) on Monday became the first and only cryptocurrency platform to see its stock join the S&P 500 (^GSPC) index, a milestone that crypto bulls cheered during what became a busy week of developments for the company.
Coinbase stock was down roughly 1% shortly after Monday's open. Its shares are up more than 25% since news broke a week ago that the crypto exchange provider would be added to the broad benchmark index.
"Coinbase joining the S&P 500 means crypto's here to stay," Coinbase CEO Brian Armstrong told Yahoo Finance last Wednesday.
"It's going to be in everybody's 401(k)," he added. "Everyone's going to have crypto exposure, you know, at least indirectly through Coinbase, which is great. And it's also a symbol that crypto is updating the financial system."
Read more here.
S&P 500 falls, snaps 5-day win streak as Treasury yields rise
Stocks fell on Monday, with Tech and Consumer Discretionary leading to the downside, while Treasury yields rose in reaction to Moody's downgrade of the US credit rating. Investors also digested tariff comments from Treasury Secretary Scott Bessent that signaled the trade war isn't over.
The Dow Jones Industrial Average (^DJI) fell about 0.6%. The S&P 500 (^GSPC) dropped more than 1% on the heels of a five-day run of wins, and the Nasdaq Composite (^IXIC) (IXIC) sank 1.5%.
Late on Friday, Moody’s cut the US government’s long-term credit rating from Aaa to Aa1. Investors may also be reacting to Treasury Secretary Scott Bessent's remarks over the weekend, in which he said countries would see a return to April 2 "reciprocal" tariff levels if they don't negotiate in good faith.
Treasury yields rose as bond prices fell. The benchmark 10-year yield (^TNX) rose to around 4.55%, and the 30-year equivalent (^TYX) broke above 5% — its highest level since late 2023.
Tesla, Palantir drop amid broader tech sell-off
Tech stocks led losses Monday as part of a broader sell-off after Moody’s cut the US government’s long-term credit rating from Aaa to Aa1 late Friday.
And two tech movers, Tesla (TSLA) and Palantir (PLTR), which are coming off major gains last week, are taking a leg lower Monday morning.
Tesla stock fell 3.6% after coming off another strong week of double-digit gains last week as hopes for an auto tariffs reprieve, CEO Elon Musk's pay package, and a new board member offset concerns over demand weakness in Europe.
Palantir shares slid 4% an hour before the opening bell. In recent weeks, some analysts have noted concerns about the AI software play's lofty valuation. Last week, Palantir hit another record high.
This could be another market surprise after Moody's US credit rating downgrade
Yahoo Finance's Brian Sozzi writes:
Novavax stock soars on FDA vaccine approval
Novavax (NVAX) stock shot up more than 16% premarket on Monday after the company finally received FDA approval for its COVID-19 vaccine, though only under some conditions.
The US Food and Drug Administration approved Nuvaxovid for use in older adults and people over 12 years with health conditions that put them at risk from COVID. The vaccine was previously approved for emergency use only.
Novavax's vaccine approval had been called into question after the FDA delayed its approval decision and Health and Human Services Secretary Robert F. Kennedy Jr. expressed skepticism over its efficacy.
Reuters reports:
'Sell America' is back as Moody's pushes 30-year yield to 5%
The yield on 30-year Treasurys rose to the key 5% level early on Monday after Moody's became the last of the major ratings agencies to downgrade US credit.
The move stoked concerns around the growing $36 trillion US deficit, seen by some as a looming debt time-bomb.
Bloomberg reports:
Nvidia stock falls after chipmaker debuts products at Taiwan expo
Wall Street is digesting a stream of announcements from Nvidia CEO Jensen Huang in Taiwan, ranging from development of human-shaped robots to tech that lets customers build custom AI servers.
Shares in the AI chipmaker dropped around 3% in the wake of the news from the Computex Taipei tech expo in Taiwan on Monday.
NasdaqGS - Nasdaq Real Time Price USD
As of 1:19:15 PM EDT. Market Open.
Yahoo Finance's Daniel Howley reports on the product debuts:
Morgan Stanley says buy any dip in US stocks after Moody's cut
Bloomberg reports:
Investors should buy any dips in US stocks fueled by Friday’s credit rating cut, as the trade truce with China has reduced the odds of a recession, according to Morgan Stanley’s Michael Wilson.
The strategist sees a greater chance of a pullback in equities after the downgrade by Moody’s Ratings pushed 10-year bond yields (^TNX) above the key 4.5% level. However, “we would be buyers of such a dip,” Wilson wrote in a note.
S&P 500 futures (ES=F) slid 1.2% on Monday following the debt downgrade, which Moody’s said was in response to a ballooning budget deficit that showed little sign of narrowing. The move has reignited worries about whether US assets are still popular at a time of lingering global trade uncertainty.
Good morning. Here's what's happening today.
Walmart stock slips as Trump takes aim over tariff-fueled price hikes
Shares of Walmart slipped in premarket trading after President Trump took the retailer to task over its looming tariff-fueled price hikes.
"Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, 'EAT THE TARIFFS,' and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!," Trump said in a post on Truth Social on Saturday.
His Treasury Secretary, Scott Bessent, meanwhile played down concerns about a tariff boost to inflation by saying Walmart's price-hike warning was a "worst-case scenario".
Yahoo Finance's Brian Sozzi reports:
Asian markets slip on Chinese market data and US credit downgrade
Asian equities declined Monday as investors reacted to weaker-than-expected Chinese economic data and fresh concerns over US credit risk.
China’s National Bureau of Statistics reported April industrial output rose 6.1% year-over-year, slowing from 7.7% in March but beating forecasts. Retail sales climbed 5.1%, below the expected 5.5% and down from March’s 5.9%.
Markets across the region responded negatively as Hong Kong’s Hang Seng (^HSI) dropped 0.5%, while China’s CSI 300 (000821.SS) lost 0.5%.
Japan’s Nikkei 225 (^N225) declined 0.7% as South Korea’s Kospi (^KS11) fell 1.1%. Australia’s S&P/ASX 200 (^AXJO) dipped 0.6%.
The decline in Chinese economic data's impact on the region was compounded by Moody’s recent downgrade of the US credit outlook, which weighed on investor sentiment.
Gold bounces after Moody's US credit downgrade pushes haven demand
Gold (GC=F) recovered from a six-week decline as Moody's downgrade of the US credit rating pushed investors toward haven assets.
Bloomberg reports:
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