United States benchmark averages posted minor gains on Monday despite a credit rating downgrade by Moody’s, with investor focus shifting to corporate developments and bond market movements.
The Dow Jones Industrial Average advanced 137.33 points, or 0.32%, to close at 42,792.07. The S&P 500 edged up 0.09% to 5,963.60, notching its sixth straight day of gains. The Nasdaq Composite added just 0.02% to finish at 19,215.46.
One of the day's standout performers was UnitedHealth, which surged 8.2% after a sharp 23% decline last week after the company suspended its 2025 guidance, its CEO stepped down, while reportedly coming under investigation by the U.S. Department of Justice.
Meanwhile, bond markets saw heightened activity after Moody’s cut the U.S. credit rating by one notch from Aaa to Aa1, citing rising fiscal deficits and challenges in refinancing debt amid elevated interest rates.
The move aligns Moody’s with other major rating agencies and reignites concerns about the federal government’s long-term fiscal health.
The downgrade pressured bond prices and sent yields higher early in the session. At their peaks, 30-year U.S. Treasury yields rose above 5%, while 10-year yields exceeded 4.5%.
By the close, however, the 30-year rate was at 4.905%, the 10-year Treasury yield had stabilised at 4.449%, while the 2-year yield declined slightly to 3.972%.
