Stock indexes up slightly despite US credit rating downgrade, T-note yields jump

From Nasdaq: 2025-05-19 13:44:00

Stock indexes saw mixed trading today, with the S&P 500, Dow Jones Industrials, and Nasdaq 100 all up slightly. Moody’s downgraded the US credit rating, leading to a jump in T-note yields. Fed officials are cautious about interest rates, citing inflation concerns. Markets are focused on tariff news and upcoming economic data. Earnings season shows strong results, with 77% of S&P 500 companies beating estimates.

T-notes are under pressure after the US credit downgrade, with yields reaching a 5-week high. European government bond yields are also higher. The ECB is cautious about further rate cuts. Swaps indicate a high chance of an ECB rate cut in June. ECB President Lagarde sees the dollar’s decline as reflecting uncertainty in US policies.

Tech stocks like Tesla, Apple, and chipmakers are down, while gold mining and health insurance stocks are up. NuScale Power and Shake Shack also saw losses. Reddit and Netflix were downgraded. Earnings reports for various companies are due today. AutoZone and Take-Two Interactive Software are among the top gainers. Solventum and Sight also saw positive movements.



Read more at Nasdaq: Stocks Climb Off Lows After US Credit Rating Downgrade