Shares opened decrease on Monday as Wall Road flipped damaging after Moody’s downgraded the US’ credit standing.
The S&P 500 fell 0.8% on the open, whereas the Nasdaq Composite dropped 1%, because the downgrade mixed with broader market considerations to dampen investor sentiment. The blue-chip index and the Dow Jones Industrial Common every misplaced greater than 200 factors in early buying and selling though inside the first 45 minutes of buying and selling patrons got here in and pushed main indices to almost flat.
As shares and the greenback reacted decrease, Treasury yields spiked.
The 30 yr Treasury yields climbed to the 5% degree, reflecting market considerations over U.S. debt amid Moody’s Scores downgrade. Any additional surges within the 30-year yield will see it hit an 18-year excessive.
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The 30-year yield is now 5.03%—highest since October 2023.
If it goes 9 foundation factors increased, it will likely be a brand new 18-year excessive. pic.twitter.com/s3u8o6y84D
— Jim Bianco (@biancoresearch) Might 19, 2025
On Friday, the scores physique introduced it was slicing down the U.S.’s ranking from Aaa to Aa1.
Per the agency, the present ranking aligns with the nation’s debt outlook as signalled by its price range deficit and rising burden of debt refinancing.
Learn extra: Why crypto market is down in the present day: Moody’s U.S. downgrade triggers sell-off
The downgrade of the U.S.’s credit standing comes amid the Federal Reserve’s newest choice to maintain rates of interest unchanged. Regardless of current offers with China and the UK, President Donald Trump’s general tariff coverage has additionally had an impression and buyers eye extra readability and extra offers.
Commenting on Moody’s downgrade, RBC Capital Markets head of U.S. fairness technique Lori Calvasina instructed CNBC in an interview:
“There’s not a ton of significance right here… It’s extra symbolic, however on the similar time, if it’s going to push 10 yr treasury yields up, my market goes to care.”
Monday’s downbeat open comes after a largely optimistic week for U.S. shares.
The Nasdaq Composite closed greater than 7% up final week, whereas the S&P 500 edged greater than 5% for a five-day successful streak that had buyers upbeat. Even the Dow, which struggled a bit over the week, rose to finish the week greater than 3% up.
With the 10-year yield additionally surging to above 4.5%, shares heaved below sell-off strain.
Cryptocurrencies additionally dipped, with Bitcoin (BTC) plunging to lows of $102k after retesting highs of $107k on Sunday. Regardless of the volatility, analysts are bullish on BTC and crypto, with broader sentiment being that the crypto market nonetheless has room for upside continuation.
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