US Stock Market today down after Moody's downgrade rating of US credit but past data reveals effects may not last long
US Stock Market
on Monday fell big time as
Moody's downgrade
rating of US credit has left a bruising impact on the Wall Street. However, experts have assured S&P 500, Dow Jones and Nasdaq investors that
Moody's
credit downgrade is unlikely to have long-term cascading effect on the share market, as per a report.
Experts have cited S&P 2011 downgrade and Fitch 2023 downgrade and their effects to predict a more hopeful trade time. In both cases US Stock Market bounced back within months of the downgrade report, Yahoo Finance reported.
Still, stocks were off their lows, with yields on U.S. government bonds, which move inversely to prices, also easing from highs. The 10-year note rose 5 basis points to 4.49 per cent and the 30-year note touched 4.96 per cent. With 10-year Treasury Yields rising, stock market experts have advised investors to "buy the dip".
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Dow Jones Industrial Average fell 65.05 points, or 0.15 per cent, to 42,589.69, the S&P 500 lost 18.10 points, or 0.30 per cent, to 5,940.18 and the Nasdaq Composite lost 92.68 points, or 0.48 per cent, to 19,118.42.
Six of the 11 S&P sub-sectors fell, with consumer discretionary and energy being the worst performers. Most megacap and growth stocks recouped some of their losses around noon, though Tesla lagged with a 3.1 per cent fall.
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Highly valued tech stocks were pressured as rising rates tend to discount the present value of future profits. Chip stocks also sold off, with a gauge for semiconductor stocks losing 0.9 per cent.
FAQs
Q1. How is US Stock Market performing on Monday?
A1. Dow Jones Industrial Average fell 65.05 points, or 0.15 per cent, to 42,589.69, the S&P 500 lost 18.10 points, or 0.30 per cent, to 5,940.18 and the Nasdaq Composite lost 92.68 points, or 0.48 per cent, to 19,118.42.
Q2. What are key indexes of US Stock Market?
A2. Key indexes of US Stock Market are Dow Jones Industrial Average, S&P 500, and Nasdaq.
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