Stocks Recover
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For a minute there, it looked like the “Sell America” trade was poised to make a comeback on Monday after Moody’s decided to strip the U.S. of its top-tier credit rating late Friday.
Stocks end higher, despite Moody’s warning on debt Copyright 2025 The Associated Press. All Rights Reserved.
Investors will get the first chance to react to Moody’s downgrade of the U.S. credit rating late Friday over rising government debt and they’ll also look for more progress from President Trump on trade deals as the week kicks off.
The stock market didn’t notice. The S&P 500 secured its sixth winning day in a row and the Dow added 137 points. Equity investors at this point seem numb to both fiscal calamity and shaky economic sentiment. Bond traders, meanwhile, responded differently.
A dip in the stock market caused by the Moody’s downgrade of the U.S. debt should be bought, according to a once-pessimistic and now seemingly bullish strategist.
Tom Lee says Moody's downgrade of US credit a "non-event." He expects Magnificent 7 stocks to rally in the second half of 2025.
Local shares tumbled yesterday below the 6,400 level amid persisting negative sentiment following Moody’s credit rating downgrade of the US.
U.S. stock futures point to a lower open, a day after stocks made a comeback to close higher despite Moody's stripping the U.S. of its top AAA rating.