US Stocks Rise Amid Moody’s Debt Downgrade Hype, But Bond Market Disagrees
Moody’s issued a warning about the potential downgrade of US sovereign debt, but markets have largely ignored it. The S&P 500 index rose 0.09% for its sixth consecutive daily gain. Despite Moody’s negative assessment, bond prices rebounded, with the 10-year Treasury yield closing at 4.44%. This suggests that investors are taking a more nuanced view of the debt situation than Moody’s ratings agency initially suggested.
Source: https://www.bloomberg.com/opinion/newsletters/2025-05-20/markets-snap-back-but-moody-s-was-on-to-something