Dow Rebounds to Close Higher Despite Early Losses; Moody's Downgrades U.S. Debt Rating
Stocks rose modestly after a rocky start, led by gains in gold, biotech, and healthcare sectors. Moody's downgrade spurred market volatility and a gold rally.
The Dow fell more than 300 points in early trading but ended the day up 137.33 points (0.3%) at 42,792.07. The S&P 500 also inched up 5.22 points (0.1%) to 5,963.60 while the Nasdaq crept up 4.36 points or less than a tenth of a perecnt to 19,215.46.
Moody's has downgraded the U.S. debt rating by a notch to Aa1 from Aaa. It also said the downgrade reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns.
Selling pressure waned as traders seem to remain generally optimistic about the outlook for the markets. Conference Board released a report showing its reading on leading U.S. economic indicators slumped by more than expected in the month of April. The report said the leading economic index tumbled by 1% in April after sliding by a downwardly revised 0.8% in March.
Gold stocks were substantially strong, as the price of the precious metal surged in reaction to Moody's downgrade of the U.S. debt rating. Reflecting the strength in the sector, the NYSE Arca Gold Bugs Index jumped by 2.2%. Biotechnology, healthcare and brokerage stocks were strong while energy stocks moved downwards despite an increase by the price of crude oil.
Asia-Pacific stocks moved mostly lower. Japan's Nikkei 225 Index fell by 0.7% while South Korea's Kospi slid by 0.9%. Most European stocks moved upwards The German DAX Index climbed by 0.7% and the U.K.'s FTSE 100 Index rose by 0.2% although the French CAC 40 Index closed just below the unchanged line.
In the bond market, treasuries regained ground after an early slump but remained in the red. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose 3.4 bps to 4.47% after reaching a high of 4.56%.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
36 minutes ago
- Time of India
US stock market today: S&P 500 flat, Dow Jones down, Nasdaq‑100 up— biggest gainers, losers as Wall Street eyes US-China trade talks and potential tariff deal
US stock market live update: Dow Jones drops 185 points as investors await US-China trade talks progress- The US stock market opened slightly weaker on Monday, June 9, as Wall Street turned its attention to critical trade talks between the United States and China. Early trading saw the Dow Jones Industrial Average fall by 185 points, or about 0.5%, marking a cautious start to the week. The S&P 500 dipped 0.1%, while the Nasdaq Composite edged up slightly by 0.1% around 9:35 a.m. Eastern Time. Traders are closely watching the developments in London, where senior officials from both countries are meeting to ease long-standing trade tensions. The discussions aim to address a range of economic disputes and possibly roll back mutual tariffs that have been weighing on global supply chains for years. How are the major indices performing? S&P 500 (SPY): Sitting steady at about 599.15, virtually unchanged from the previous close, remaining just under the 6,000 mark. Dow Jones Industrial Average (DIA): Dropping roughly 0.21% to 427.47, reflecting some investor caution. Nasdaq-100 (QQQ): Climbing around 0.16% to 530.77, fueled by strength in the tech sector. Which stocks are making the biggest moves? Top gainers today include: by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Here's What a New Roof Should Cost in 2025 Learn More Undo Warner Bros Discovery: Surging 7-9% following news of a company split. IonQ: Up about 3% after announcing an acquisition of Oxford Ionics. Merck: Rising 1.1%, boosted by positive trial results. Nvidia: Gaining between 1.3% and 2.3%, riding the wave of AI enthusiasm. Qualcomm: Jumping 4.4% on completion of its Alphawave IP purchase. Apple: Adding 0.7%, supported by new AI features unveiled at the WWDC event. Biggest losers include: Robinhood: Dropping 7.4% after being excluded from the S&P 500 index. Tesla: Down between 0.3% and 2%, impacted by a recent downgrade and fallout from Musk-related news. EchoStar: Falling 8.2% amid bankruptcy rumors. Live Events Why are the US and China meeting now — and what's at stake for the stock market? This week's US-China trade talks are seen as pivotal for the global economy. Tariffs imposed in past years have disrupted everything from electronics to heavy equipment. Though those tariffs are currently paused, no permanent deal has been reached. Analysts believe that progress in these talks could help avoid a potential economic slowdown or even a recession, especially if they result in the reduction or removal of tariffs on both sides. A positive outcome could also reignite investor confidence and fuel another leg up in the US stock market rally. These modest moves reflect investor hesitancy. Market players are clearly waiting for concrete news before making big decisions. The S&P 500 remains just 2.5% below its all-time high, buoyed by hopes that the US may reach trade agreements that roll back tariffs globally. What's driving the stock market recovery in 2025? One major factor behind the stock market's strong recovery has been the belief that President Donald Trump will reduce trade barriers as part of broader global deals. After plunging by nearly 20% from its peak two months ago, the S&P 500 has made a swift comeback. That optimism is largely driven by expectations that smoother trade relations — particularly with major economies like China — will relieve pressure on multinational companies and bring stability back to supply chains. Are tariffs still in effect, and why does it matter now? Currently, both the US and China have put a pause on new tariffs, but existing ones remain. These tariffs have cost industries billions, increased consumer prices, and created uncertainty for global manufacturers. What's important now is whether these paused tariffs are finally lifted. This could significantly improve the flow of goods, lower costs, and potentially lead to more business investments, especially in sectors like tech, agriculture, and manufacturing. Could US-China trade deals shape the next market trend? Absolutely. Any meaningful breakthrough in US-China trade negotiations could serve as a key catalyst for markets. Investors are looking for long-term clarity, not just temporary relief. If Monday's talks in London show signs of real progress, we could see increased investor confidence, reduced market volatility, and fresh momentum across Dow Jones, S&P 500, and Nasdaq. But without a deal, continued uncertainty could weigh on the markets in the coming weeks. What's driving the market today? Trade talks between the U.S. and China in London continue to shape investor sentiment, contributing to the Dow's decline and a slight Nasdaq boost. Inflation concerns remain front and center , with traders awaiting this week's CPI and core PCE data releases. Expectations suggest the Federal Reserve may hold interest rates steady for now. Sector trends show technology stocks powering the gains, while healthcare lags behind. What should investors watch next? Investors should keep a close eye on the statements or outcomes from the US-China meetings. Any mention of progress on tariff rollbacks, trade agreements, or economic cooperation could trigger immediate market reactions. It's also worth noting that the Federal Reserve's next move, broader economic indicators, and the 2024 US election climate remain in focus as secondary factors influencing the market direction. FAQs: Q1: Why did the Dow Jones fall 185 points today? The Dow Jones dropped due to investor caution ahead of the US-China trade talks. Q2: What are US-China trade talks about? The talks aim to ease tariffs and settle long-running trade disputes affecting the global economy.
Hans India
an hour ago
- Hans India
Wall Street steady as investors watch US-China trade talks; Warner Bros. soars, Tesla slips
Wall Street Steady as Investors Watch US-China Trade Talks; Warner Bros. Soars, Tesla Slips By Rajendra Saxena | Updated: 9 Jun 2025, 08:42 PM IST US stock markets were largely unchanged on Monday morning as investors awaited the outcome of high-level trade negotiations between the United States and China in London, aimed at easing ongoing trade tensions. As of 10:45 AM Eastern time, the S&P 500 remained flat, the Dow Jones Industrial Average dipped 0.4%, and the Nasdaq Composite rose 0.4%. At the open, the Dow added 23.3 points to reach 42,786.19, the S&P 500 climbed 4.3 points to 6,004.63, and the Nasdaq Composite advanced 43.2 points to 19,573.14. The talks feature a US delegation led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, meeting with Chinese Vice Premier He Lifeng and his team. Meanwhile, the bond market saw slight movement, with the 10-year Treasury yield edging down to 4.50%, compared to 4.51% late Friday. Top Movers: Warner Bros. Discovery shares soared over 12% after the media conglomerate announced plans to split into two entities, aiming to boost its streaming services. IonQ rose 3.2% following its acquisition announcement of Oxford Ionics in a deal valued at approximately $1.08 billion. Tesla slipped 3.5% amid growing tensions between CEO Elon Musk and former President Donald Trump. Markets are expected to remain cautious throughout the week with a focus on US inflation data, the ongoing trade dialogue, and upcoming tech events, including Apple's announcements.
Mint
2 hours ago
- Mint
TSX falls as tech shares weigh; eyes on US-China trade talks
June 9 - Canada's main stock index fell on Monday, dragged by technology shares, as investors cautiously monitored a fresh round of U.S.-China trade talks aimed at easing tensions between the world's largest economies. The S&P/TSX composite index was down 0.3% at 26,346.82 points, coming off its record high close on Friday. All eyes are on the high-stakes talks in London, where top U.S. and Chinese officials are meeting to defuse tensions that recently expanded beyond tariffs to export controls over goods and components critical to global supply chains. "I would say there is an undercurrent of caution," said Brian Madden, chief investment officer and portfolio manager at First Avenue Investment Counsel. "There's lots of sort of arm waving about trade phone calls, but trade deals take a long time to negotiate, so I don't think anyone is expecting a miracle here in the short term between the U.S. and China". The discussions follow a rare call last week between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping. Meanwhile, Prime Minister Mark Carney on Monday Canada's Liberal government will pour extra billions into its armed forces and hit NATO's 2% military spending target this fiscal year, five years earlier than promised. Jet maker Bombardier and aviation simulation and training company CAE gained 2.7% and 0.8%, respectively. The broader industrial sector, however, fell 0.5%. Information and technology shares were leading the losses on the TSX, with enterprise software solutions provider Enghouse Systems falling 2.4% as brokerage CIBC cut the price target on the stock. Heavyweight materials sector was trading in green with 0.2% gains as gold and silver prices rose in the day. Among other stocks, uranium supplier Cameco jumped 9.6% to the top of the benchmark index after a number of analysts raised the stock's price target. This article was generated from an automated news agency feed without modifications to text.
