Stocks eye Moody’s US downgrade, trade deals: Live Updates
Investors will get the first chance to react to Moody’s downgrade of the U.S. credit rating late Friday over rising government debt and they’ll also look for more progress from President Trump on trade deals as the week kicks off. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
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A trader works on the floor of the New York Stock Exchange in New York City. (Reuters)
Stocks closed higher on Monday as investors looked past Moody's U.S. credit rating cut.
The Dow Jones Industrial Average rose 137.33 points, or 0.32%, while the S&P 500 and Nasdaq Composite eked out gains, climbing 0.09% and 0.02%, respectively.
Moody's Ratings on Friday announced that it downgraded the U.S. credit rating by one notch due to persistent fiscal deficits that it sees as likely to deteriorate in the future.
The downgrade moves the U.S. credit rating down one notch from Aaa to Aa1 on Moody's 21-notch rating scale. The firm also changed its outlook for the U.S. from negative to stable.
Moody's said that the downgrade "reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns."
The Dow turned positive for 2025 on Friday led by United Healthcare, Walmart and 3M, while Chevron and Boeing lagged.
Photographer: Chris Ratcliffe/Bloomberg via Getty Images
JPMorgan CEO Jamie Dimon, a long opponent of Bitcoin, begrudgingly said the bank will change its policies on the crypto currency.
"I am not a fan of it. We are going to allow you to buy it. And we're not going to custody it. We're going to put it on statements for clients. So, you know, I don't think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin. Go at" Dimon said in answer to a question at the company's annual investor day.
Bitcoin remains above the $100,000 mark but off its all-time high of $106734.51
| Symbol | Price | Change | %Change |
|---|---|---|---|
| I:DJI | $42,779.40 | 124.66 | 0.29 |
| SP500 | $5,959.77 | 1.39 | 0.02 |
| I:COMP | $19,196.07 | -15.03 | -0.08 |
U.S. Treasury Secretary Scott Bessent isn't worried about Moody's downgrade of the U.S.A's credit rating because its a lagging indicator and he feels the country is in much better shape in real-time...
U.S. stocks reversed morning losses on Monday.
Wendy McMahon, CEO of CBS News has stepped down. The unit is now part of Paramount Global.
Trading Economics
The yield on the 10-year Treasury, which helps set loan and mortgage rates, topped 4.5% briefly before pulling back on Monday over worries about Moody's credit downgrade for the U.S. over rising debt and deficit levels.
Yields, which trade inverse to prices, also rose for the 30-year which crossed 5%.
Higher yields pressured stocks which have since erased most of the morning losses.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| I:DJI | $42,810.02 | 155.28 | 0.36 |
| SP500 | $5,964.77 | 6.39 | 0.11 |
| I:COMP | $19,214.29 | 3.19 | 0.02 |
Britain's Prime Minister Keir Starmer poses with European Commission President Ursula von der Leyen and European Council President Antonio Costa as they arrive to attend the UK-EU Summit at Lancaster House in London on May 19, 2025. HENRY NICHOLLS/Pool via REUTERS
The United Kingdom and the European Union reached a landmark agreement centered on fishing rights and defense cooperation Monday, five years after Brexit.
British Cabinet Office minister Nick Thomas-Symonds announced the deal as officials from both sides met in London for their first major summit since the U.K. formally left the 27-nation trade bloc in 2020. That followed a slim-margin 2016 referendum vote calling for the U.K.'s departure.
"Historic day," Thomas-Symonds wrote on X on Monday. "After months of negotiations, I can announce that the Labour Government has secured a new agreement with the EU."
The government of British Prime Minister Keir Starmer, who met with European Commission President Ursula von der Leyen and other senior EU officials, billed the summit as a major milestone in resetting relations.
This is an excerpt from an article by Fox News’ Danielle Wallace. To read more, click here.
Fourteen-karat gold is 58.3% pure, while 24-karat gold is 99.9% pure. (REUTERS/Mike Segar / Reuters Photos)
Following Moody's downgrade of the US credit rating, there has been a boost in gold demand, with prices above $3,218.
The U.S. economic outlook and market volatility are driving the precious metal's gains. However, gold has experienced a number of price swings recently and suffered its biggest loss last week after it saw a climb of above $3,500 an ounce for the first time last month.
Analysts are saying they expect gold to be volatile initially but say that overall in the coming years, it could be driven to new heights.
“We expect gold to be volatile in the short term as we see a mix of good and bad news headlines,” Vasu Menon, managing director of investment strategy at Oversea-Chinese Banking Corp, told Bloomberg. In the long run, Trump’s policies and diversification away from dollar-denominated assets are “structural tailwinds for gold that could see it scaling new heights in the coming years,” he said.
The U.S. lost its top notch credit rating after Moody's downgraded the country late Friday over rising debt and deficit levels.
The downgrade moves and the U.S. credit rating down one notch from Aaa to Aa1 on Moody's 21-notch rating scale. The firm also changed its outlook for the U.S. from negative to stable.
Stock and bond investors will get the first chance to react to the move on Monday following a strong week of gains for the S&P 500, Nasdaq Composite and Dow Jones Industrial Average.
Walmart, last week, warned customers it may have to raise prices on certain items due to President Donald Trump's tariffs.
Over the weekend, Trump told Walmart to "eat the tariffs" in a testy social media post.
Sunday, U.S. Treasury Secretary Scott Bessent, made an effort to smooth over relations with the nation's largest retailer and employer.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BA | $204.35 | -1.47 | -0.71 |
| GE | $233.83 | 2.05 | 0.88 |
President Donald Trump scored big deals for both Boeing and General Electric that could reap revenues for years to come, if the deal terms are met.
For Boeing, an order from Qatar Airways is the biggest ever for the plane maker and should help stabilize the overhang of quality, production and safety issues dogging the company.
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