S&P 500 notches 6-day win streak, Dow, Nasdaq rise as Wall Street shakes off Moody's downgrade

US stocks managed to eke out gains on Monday as bond yields eased off bigger gains and Wall Street largely shrugged off Moody's downgrade of the US credit rating. Meanwhile, investors digested developments in President Trump's tariff salvos.

The Dow Jones Industrial Average edged up 0.3%. The S&P 500 managed to close above the flatline to extend its 5-day win streak. The tech-heavy Nasdaq Composite also rose slightly.

Moody’s cut the US government’s long-term credit rating from AAA to AA1 late Friday, citing escalating deficits and the increasing burden of refinancing US debt amid elevated interest rates. The downgrade brings Moody’s in line with Fitch and S&P, which previously stripped the US of its top-tier rating.

Even as stocks continued their recent bullish run, bumpy progress of the Republican tax-and-spend bill remained in high focus. Longer-dated Treasury yields eased from their session highs. The benchmark 10-year yield had risen to near the key 4.5% level, and the 30-year equivalent broke above 5% — a level not seen since late 2023, before declining.