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.
