Stock Bulls Return to Bounce from Lows – US Market Wrap

A renewed wave of dip buying fueled a stock rebound, with traders looking past Moody’s Ratings’ downgrade of the US credit rating, which had previously caused bond yields to rise. The dollar fell.

The rebound in equities propelled the S&P 500 higher for the sixth consecutive session, with the American benchmark closing at a significant distance from a bull market. Several strategists believe any pullback could be a buying opportunity, fueled by the recent US-China tariff truce. Treasuries also rose across the curve, following a selloff that briefly lifted 30-year yields above 5%.

Moody’s downgraded the United States’ last triple-A credit rating on Friday, citing more than a decade of inaction by successive administrations and Congress to reverse a trend of large fiscal deficits. Treasury Secretary Bessent downplayed concerns on Sunday, saying the government is determined to reduce spending while growing the economy.

Both the S&P 500 and the Nasdaq 100 showed little change. The Dow Jones Industrial Average gained 0.3%.
The yield on 10-year Treasuries fell two basis points to 4.46 percent. The dollar dropped 0.6%. Oil prices edged higher after a volatile day of trading, as investors sought clues about Russia-Ukraine truce talks and a possible nuclear deal with Iran.