The values of US stocks, bonds, and the US dollar fluctuated on Monday, prompted by a fresh reminder of the looming unsustainable debt situation.
Moody’s is the last of the three major credit rating agencies to suggest that the US federal government no longer warrants a premier “AAA” rating.
The S&P 500 increased by 0.1%. The Dow Jones Industrial Average saw a rise of 0.3%, while the Nasdaq remained relatively stable.
In the bond market, the 30-year Treasury yield surged past 5% before easing slightly. All the issues pointed out by Moody’s in its downgrades are familiar to investors.
On Monday:
The S&P 500 climbed by 5.22 points (0.1%) to reach 5,963.60.
The Dow Jones Industrial Average rose by 137.33 points (0.3%) to 42,792.07.
The NASDAQ Composite edged up to 19,215.46, reflecting a minor gain of 4.36 points (below 0.1%).
The Russell 2000 Index, which tracks small businesses, dipped by 8.82 points (0.4%) to 2,104.43.
This year:
The S&P 500 has increased by 81.97 points, or 1.4%.
The Dow has gained 247.85 points (0.6%).
The Nasdaq has decreased by 95.33 points, or 0.5%.
The Russell 2000 has fallen by 125.72 points (5.6%).
Source: apnews.com