US stocks tumbled Monday morning — the first day of trading after a US downgrade by Moody’s.
The Dow Jones Industrial Average dipped less than 0.1%, or 45 points, by approximately 10:45 a.m. ET, while the S&P 500 and Nasdaq slipped 0.3% and 0.5%, respectively.
The declines broke a fledgling two-day streak in the green for the major stock indexes as markets attempted to bounce back last week after President Trump announced a 90-day truce with China to lower tariff rates.
Moody slashed the nation’s credit rating down one notch from Aaa, the highest score, to Aa1, after Friday’s closing.
The ratings agency attributed the downgrade to the cost of financing the government’s budget deficit, as well as high costs associated with rolling over existing debt due to stubbornly high interest rates.
The ratings change sent US Treasury yields soaring Monday, with the 30-year yield hitting a high of around 5.03% – levels not seen since November 2023.
By approximately 10:45 a.m. ET, the 39-year note traded at 4.976%, while the 10-year and 2-year yields traded at 4.501% and 3.983%, respectively.
