Moody's downgrade impact was short-lived, US stocks opened low and closed high, S&P rose six times in a row, US bonds reversed V-shaped, gold futures rebounded by more than 2% at one point

Source: Wall Street News

As the market digested the impact of Moody's downgrade of the U.S. credit rating, the three major U.S. stock indexes opened lower and moved higher on Monday, turning positive during the session, with the S&P 500 narrowly notching a three-day winning streak. U.S. Treasury yields surged and then pulled back intraday, with prices staging a V-shaped reversal. The U.S. dollar weakened, and gold rebounded.  

The impact of the U.S. losing the last top credit rating from the three major rating agencies faded, as U.S. stocks and Treasuries turned positive during Monday's session, avoiding a "triple sell-off" in equities, bonds, and foreign exchange:  

In pre-market trading on Friday and after-hours, Moody's revoked the U.S.'s last AAA credit rating due to massive fiscal deficits and rising interest costs. Additionally, the House Budget Committee approved President Trump's tax and spending bill Sunday evening, a milestone for a proposal expected to add trillions of dollars to the deficit. This intensified investor concerns about the trajectory of U.S. debt. The U.S. market briefly experienced a "triple sell-off" in equities, bonds, and foreign exchange on Monday.  

At the open, the three major U.S. stock indexes fell, along with long-term U.S. Treasury prices and the U.S. Dollar Index. Most leading tech stocks declined, with NVIDIA falling over 2%. U.S. Treasuries continued to decline, with the 30-year Treasury yield surging to 5.02% intraday. The Japanese yen, Swiss franc, and euro all rose, while gold surged over 1% at one point, and oil prices edged lower.  

In the early trading session, the impact of Moody's downgrade on the U.S. proved "short-lived." The S&P 500 and Nasdaq erased early declines of over 1% and turned positive. The U.S. 30-year Treasury yield retreated below 4.98%, and the 10-year Treasury yield fell back to around 4.5%, with overall daily gains narrowing to less than 2.4 basis points. The U.S. Dollar Index fell over 0.7% at one point, while spot gold prices rose over 1%, fluctuating above the $3,200 threshold. WTI and Brent crude oil fell nearly 1.5% at one point but later reversed to recoup intraday losses.  

On Monday, the three major U.S. stock indexes opened lower and closed higher, with the S&P 500 notching a thrilling six-day winning streak. UnitedHealth led the Dow Jones Industrial Average higher with an over 8% gain. Microsoft outperformed the "Magnificent Seven" tech stocks, rising over 1% after announcing the integration of Elon Musk's Grok 3 and other AI models into its cloud platform. Tesla performed worst, falling over 2%. Chinese concept stocks edged lower, though Xiaomi rose over 3%.  

**Closing Data for Major U.S. Stock Indexes**:  

- S&P 500 Index: +5.22 points (+0.09%) to 5,963.60  

- Dow Jones Industrial Average: +137.33 points (+0.32%) to 42,792.07  

- Nasdaq Composite: +4.36 points (+0.02%) to 19,215.46  

- Nasdaq 100 Index: +19.12 points (+0.09%) to 21,447.05  

- Russell 2000 Index: -0.42% to 2,104.43  

- CBOE VIX (Fear Index): +5.28% to 18.15  

**U.S. Sector ETFs**:  

- Energy ETF: -1.3%  

- Regional Bank ETF, Bank ETF, Consumer Discretionary ETF, Semiconductor ETF, Tech ETF, Internet Stock Index ETF, Global Tech Stock Index ETF: Down up to 0.41%  

- Global Airline ETF: +0.13%  

- Consumer Staples ETF, Utilities ETF, Healthcare ETF, Biotech Index ETF: Up to +1.11%

"Seven Sisters of Technology":

The Magnificent 7 index of the US technology stock market fell 0.04% to 161.81 points. After opening low, it showed a V-shaped trend throughout the day.

Microsoft closed up 1.01%, Amazon, Google A, Nvidia, and Meta Platforms rose at most 0.28%, Apple closed down 1.17%, and Tesla fell 2.25%.



Chip stocks:

The Philadelphia Semiconductor Index closed down 0.50% at 4897.71 points.

AMD closed down 2.07%, while TSMC ADR fell 0.37%.

AI concept stocks:

Tempus AI fell 2.67%, Palantir fell 2.46%, and Applovin closed up 2.29%.

Chinese stocks listed in the United States:

The Nasdaq Golden Dragon China Index closed down 0.17% to 7377.62 points.

Popular Chinese stocks listed in the US, Pony Ma, fell 7.7%, Bilibili fell 4.7%, JD.com, Pinduoduo and Yum China rose at most 0.6%, Tencent rose 1.6%, and Xiaomi rose 3.4%.

Other stocks:

Buffett's Berkshire Hathaway Class B shares fell 0.37%. Eli Lilly fell 0.3%.

The "Trump tariff loser" index fell 0.29% to 98.81 points. The constituent stock Best Buy fell 2.98%, Newway fell 3.56%, and American Eagel fell 3.88%. "Tesla's rival" Rivian closed up 3.04%.

The European STOXX 600 index closed up more than 0.1%, the tourism and telecommunications sector rose more than 0.9%, and the auto parts sector fell more than 0.7%. The German stock index hit a record closing high, the Danish stock index rose about 1.5%, and the Italian Bank index fell more than 1%.

Pan-European European Stocks:

The European STOXX 600 index closed up 0.13% to 549.98 points.

The euro zone STOXX 50 index closed down 0.01% at 5427.23 points.

Stock indexes of various countries:

The German DAX 30 index closed up 0.70% to 23,934.98 points, hitting a record closing high for three consecutive trading days.

The French CAC 40 index closed down 0.04% at 7883.63 points.

The FTSE 100 index closed up 0.17% to 8699.31 points.

Sectors and individual stocks:

Among the blue chip stocks in the euro zone, Volkswagen, Germany, closed down 5.2%, BNP Paribas fell 2.82%, Italian Eni Group Eni fell 2.34%, Italian United São Paulo fell 2.32%, and Kering fell 1.62%.

In terms of sectors, the STOXX 600 Tourism and Leisure Index rose 0.92%, the Telecom Index rose 0.91%, the Utilities Index rose 0.58%, the Industrial Products and Services Index rose 0.54%, and the Healthcare Index rose 0.42%.

Investors gradually digest that the United States lost its last AAA rating, and the 10-year U.S. Treasury yield hit a five-week high in the session and then plunged more than 10 basis points. The yield on the two-year German bond fell by more than 1 basis point, and investors weighed Moody's downgrade of the U.S. rating.

U.S. debt:

At the end of New York, the yield on the 10-year benchmark US Treasury bond fell by about 2.0 basis points, setting a new daily low of 4.4533%.

The two-year U.S. Treasury yield fell 2.72 basis points to 3.9723%, and intraday trading was in the range of 3.9615%-4.0378%.

European debt:

At the end of the European market, Germany's 10-year government bond yield fell 0.2 basis points to 2.588%. The yield on the two-year German bond fell 1.2 basis points to 1.843%, and the day's trading was in the range of 1.896%-1.834%.

The yield on the 10-year treasury bond rose 1.5 basis points, the yield on the two-year treasury bond rose 0.2 basis points, the yield on the 30-year treasury bond rose 2.5 basis points, and the yield on the 50-year treasury bond rose 1.4 basis points.

France's 10-year government bond yield fell 0.4 basis points; Greece's 10-year government bond yield fell 1.5 basis points.

As uncertainty over the U.S. debt problem rose, the US dollar index fell by more than 0.7%, once approaching the 100-point integer psychological mark. Traditional safe-haven currencies such as the Japanese yen and the Swiss franc have been boosted. The euro rose 1% against the dollar to 1.1273, the highest level since May 9.

Dollar:

At the end of New York, the ICE US dollar index fell 0.66% to 100.425 points. After Moody's downgraded the US AAA rating, the intraday trading range was 100.883-100.064 points.

The Bloomberg US dollar index fell 0.55% to 1225.45 points, with the intraday trading range of 1230.29-1223.41 points.

Non-US currencies:

The euro rose 0.64% against the US dollar to 1.1235. The pound rose 0.53% against the US dollar to 1.3352. The US dollar fell 0.31% against the Swiss franc to 0.8350.

Among commodity currency pairs, the Australian dollar rose 0.75% against the US dollar, the New York dollar rose 0.70% against the US dollar, and the US dollar fell 0.08% against the Canadian dollar.

JPY:

In the late New York trading, the US dollar fell 0.54% against the Japanese yen to 144.92 yen, with the intraday trading range of 145.55-144.67 yen.

The euro rose 0.13% against the yen, while the pound remained roughly flat against the yen.

Offshore RMB:

In the late trading of New York, the offshore RMB was 7.2147 yuan against the US dollar, down 42 points from the late trading of New York last Friday. The overall trading in the 7.2041-7.2180 yuan range was in the range of 7.2041-7.2180 yuan.

Cryptocurrency:

In the late New York trading, the main contract of CME Bitcoin futures BTC rose 1.08% from the late New York trading last Friday to US$106,000.

The main contract of CME Ether Futures DCR fell 2.13% to $2521.50.

Recent geopolitical influences dominate the trend of oil prices. WTI crude oil reversed V-shaped, eventually closing up more than 0.3%, while New York natural gas fell more than 6.6%.

crude:

WTI June crude oil futures closed up $0.20, or 0.32, at $62.69 per barrel.

Brent July crude oil futures closed up $0.13, or about 0.20%, at $65.54 per barrel.

natural gas:

NYMEX natural gas futures closed down nearly 6.63% at $3.1130 per million British thermal units.

Gold, as a safe-haven asset, rose again today after experiencing a correction. Spot gold prices once rose above $3,230 per ounce, New York gold futures rose about 1.4%, once approaching $3,253, and New York copper rose about 1.5%. "Gold is benefiting from a worsening U.S. fiscal situation, which is likely to last for quite a long time," said Natasha Kaneva, head of commodity research at JPMorgan Chase.

gold:

At the end of New York, spot gold rose 0.88% to $3,231.90 per ounce, rising throughout the day.

COMEX gold futures rose 1.38% to $3,231.30 per ounce.

silver:

In the late trading of New York, spot silver rose 0.21% to $32.3629 per ounce.

COMEX silver futures rose 0.40% to $32.485 per ounce.

Other Metals:

In the late New York trading, COMEX copper futures rose 1.48% to $4.6615 per pound.

LME copper futures closed up $76 to $9,524/ton.

LME aluminum futures closed down $32 to $2,450/ton. LME lead futures closed down $38 to $1,962/ton. LME nickel futures closed down $86 to $15,562/ton.

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