U.S. stocks recover from initial drop but mostly lower due to negative factors

From NASDAQ.: 2025-05-19 11:07:00

Stocks initially dropped on Monday but have since recovered, with the Dow briefly hitting the unchanged line. Currently, all major averages are in negative territory, with the Dow down 0.1%, the S&P 500 down 0.4%, and the Nasdaq down 0.6%.

Last week’s rally led to the major averages reaching their best closing levels in over two months. However, negative sentiment arose from Moody’s downgrade of the U.S. debt rating to Aa1 from Aaa due to rising government debt levels.

The Conference Board reported a larger-than-expected 1.0% drop in leading U.S. economic indicators for April. Oil service stocks are notably weak, while gold stocks and prices have risen.

In global markets, Asia-Pacific stocks fell, and European markets are mixed. U.S. Treasuries declined in response to the U.S. credit rating downgrade.



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