Tue May 20 09:40:00 UTC 2025: ## US Stocks Mixed as Investors Shrug Off Moody’s Downgrade and Weigh Tariff Threats

**NEW YORK, NY** – U.S. stocks displayed resilience Monday, managing slight gains despite Moody’s recent downgrade of the U.S. credit rating and escalating concerns surrounding trade relations. The Dow Jones Industrial Average edged up 0.3%, while the S&P 500 extended its winning streak with a marginal increase. The Nasdaq Composite also closed slightly higher.

The market’s performance came as investors largely dismissed Moody’s decision to lower the U.S. long-term credit rating from AAA to AA1, citing escalating deficits and rising debt refinancing costs. This move aligns Moody’s with other major rating agencies, Fitch and S&P, which had previously downgraded the U.S.

Meanwhile, trade policy remains a key focal point. Treasury Secretary Scott Bessent warned that tariffs could be reinstated on countries failing to negotiate trade deals in good faith. President Trump also weighed in, publicly pressuring Walmart to absorb tariff costs rather than pass them on to consumers.

Treasury yields experienced volatility, with the 10-year yield briefly nearing 4.5% and the 30-year yield exceeding 5% for the first time since late 2023 before retreating.

In other market news, Bitcoin surged, nearing its highest level since January, fueled by institutional adoption and perceived crypto-friendly policies. Coinbase became the first crypto exchange to be added to the S&P 500.

However, not all sectors fared well. Technology stocks faced headwinds, with Apple and Alibaba shares declining following reports of potential concerns within the Trump administration regarding their AI partnership in China. Novavax shares soared after finally receiving FDA approval for its COVID-19 vaccine, though with some conditions. Nvidia shares dipped after Nvidia CEO Jensen Huang announced its newest product.

Looking ahead, the week’s economic calendar is light, with investors monitoring manufacturing data and initial jobless claims. Attention will also shift to retail earnings, with Target and Home Depot slated to report.

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