S&P 500 achieves its sixth consecutive day of gains as investors overlook the U.S. credit downgrade. The S&P 500 recorded a modest increase on Monday, as Treasury yields retreated from their peak levels, while investors attempted to move beyond Moody’s downgrade of the United States’ credit rating. The benchmark increased by 0.09%, concluding at 5,963.60, thereby achieving its sixth consecutive session of gains. The Nasdaq Composite experienced a marginal increase of 0.02%, concluding the session at 19,215.46. The Dow Jones Industrial Average increased by 137.33 points, representing a gain of 0.32%, concluding at 42,792.07. The 30-stock index benefited from a rebound in UnitedHealth, which experienced an 8% increase following a recent period of significant selling pressure.

Treasury yields surged following Moody’s decision to downgrade the U.S. credit rating by one notch to AA1 from AAA, aligning the agency with its counterparts. The company referenced financing difficulties associated with the expanding federal budget deficit and the implications of refinancing current U.S. debts amid elevated borrowing costs. The recent debt downgrade exerted downward pressure on bond prices, resulting in an increase in yields, coinciding with a period in which the economy is bracing for the comprehensive effects of President Donald Trump’s evolving tariff policy. During their session peaks, the 30-year U.S. bond yield surged past 5% on Monday, while the 10-year yield exceeded 4.5%. These levels negatively impacted equity markets last month and contributed to Trump’s decision to retract his most stringent tariff measures. Mortgage rates are closely aligned with the 10-year yield.

During their session lows on Monday, the Dow experienced a decline of over 300 points, while the S&P 500 saw a decrease of approximately 1%. Nevertheless, the primary indices reduced their declines as Treasury yields eased from their peaks. “The Moody’s report failed to reveal any insights that are not already well understood by investors regarding the U.S. fiscal situation,” stated Ross Mayfield, investment analyst at Baird. “It appears to offer a temporary respite for the market, allowing it to consolidate, yet it does not fundamentally alter our optimistic outlook for the next six to twelve months.” Market participants increasingly view additional trade agreements as essential for sustaining the stock market’s recovery, provided that rising yields do not deter investors beforehand.