Stocks slipped on Monday after Moody's downgraded the U.S. credit rating late Friday, causing Treasury yields to spike.

The traded 35 points lower, or 0.1%. The dipped 0.3%, while the shed 0.5%.

Moody's down one notch to Aa1 from Aaa, bringing the agency in line with peers. The firm cited financing challenges tied to the federal government's growing budget deficit and the ramifications of rolling over existing U.S. debts in a period of high borrowing costs.

The debt downgrade pressured bond prices, sending yields higher, at a time when the economy is already awaiting the full impact of President Donald Trump's unfolding tariff policy. The 30-year U.S. bond yield traded above 5% on Monday and the 10-year yield topped 4.5%, levels that hurt equity markets last month and helped lead Trump to back off his stiffest tariff measures. Rates on mortgages, car loans and credit cards track the 10-year yield.

Equities pared their early losses as Treasury yields retreated from their highest levels of the session.

Leading the losses Monday were key tech stocks that would be hurt the most if rising yields slowed the economy and hurt investors' risk appetites. was off by 2%, shed 3% and was off by 2%.

Although equities had retreated pretty severely in Monday's premarket session — with Dow futures down more than 300 points — they clawed back a large portion of their losses by midmorning.

"The Moody's report didn't highlight anything that every investor doesn't already know about the U.S. fiscal situation," said Ross Mayfield, investment analyst at Baird. "To me, it just kind of provided a little bit of cover for the market to take a breather here, but nothing that structurally changes our bullishness on where we think we'll be in the next six to 12 months."

The downgrade comes after a on Wall Street as investors cheered the White House's deal with China to . The agreement was seen as a breakthrough for global trade after Trump's initial plan for broad and steep import taxes was unveiled last month.

The technology-heavy Nasdaq Composite led the way last week, surging more than 7%. The broad S&P 500 jumped over 5% and posted a five-day winning streak. The blue-chip Dow rallied more than 3% last week. Friday's gain of over 300 points pushed the 30-stock average into positive territory for 2025.

Traders now see more trade deals as key to keeping the stock market comeback going, if higher yields don't scare away investors first.

Small caps lag

Small caps fell sharply during Monday's session.

The small cap-focused slid nearly 1% in midday trading. By comparison, the ticked down just 0.2%.

Monday's action is the latest in a year of underperformance for small caps. The Russell 2000 has dropped more than 6% in 2025, while the S&P 500 has risen more than 1%.

— Alex Harring

China says U.S. undermined trade talks with Huawei chip warning

China said Monday that the U.S. has between the two countries after the U.S. warned industry against using Huawei chips.

"China urges the U.S. to immediately correct its wrong practices and stop discriminatory measures against China," a spokesperson for China's Ministry of Commerce told a reporter, according to a Google translation.

"If the U.S. insists on its own way and continues to substantially damage China's interests, China will take resolute measures to safeguard its legitimate rights and interests," the spokesperson said.

— Kevin Breuninger, Spencer Kimball

UBS tells investors to seek a 'full strategic allocation' in U.S. equities despite recent rally and Moody's downgrade

Despite the recent rally — and Moody's downgrade of the U.S. sovereign credit rating by one notch on Friday to Aa1 — investors should continue phasing into equities, UBS wrote in a Monday note.

"We recently cut our Attractive rating on US equities to Neutral, following the strong recent rally. However, our current Neutral rating on U.S. equities should not be mistaken for a bearish view, and we continue to recommend a full strategic allocation," the bank said. "The recent earnings season has demonstrated the strength in structural AI earnings trends, we expect U.S. stocks to move higher over the next 12 months, and we maintain our sector-level Attractive ratings on communications services, information technology, health care, and utilities."

— Lisa Kailai Han

Recession risk is not gone despite tariff de-escalation, says Morgan Stanley chief global economist

De-escalating tensions between the Trump administration and China haven't completely eliminated the risk of an economic slowdown, according to Morgan Stanley.

"The most recent de-escalation prompts the question of how much recession risks have fallen. The probability has surely fallen some at the margin, but we never had a recession as a baseline, partly because we assumed the peak announced tariff rates would not last," wrote Seth Carpenter, the firm's chief global economist. "Recession risk is not gone, however, because tariffs have both direct effects and indirect effects. Even with lower tariffs, the direct drag even is still meaningful."

Carpenter added that this was bolstered by historical trends.

"The data show that the tariffs on China in the first Trump Administration were followed by a drop in industrial production and manufacturing employment," he continued. "Tariffs are taxes, and 2/3 of imports from China are capital goods or intermediate inputs. So tariffs on China are in effect a tax on domestic capex and manufacturing."

— Lisa Kailai Han

Fed's Bostic says he's 'leaning' toward one rate cut in 2025

Atlanta Fed president Raphael Bostic told C온라인카지노사이트's "" on Monday that he currently prefers as the central bank and is concerned about recent signs that inflation expectations are climbing.

"For me right now, I'm expecting it's going to take a bit longer for that to sort out. ... I'm leaning much more into one cut this year, because I think it will take time, and then we'll sort of have to see," Bostic said on 

— Jesse Pound

Stocks stumble to start the week

The major averages stumbled to kick off the new trading week.

The lost 300 points, or 0.7%. The fell 1% and the slipped 0.3%.

— Lisa Kailai Han

Stocks making premarket moves

Here are some of the stocks moving in premarket trading:

• — Shares slipped 1.7% after President Donald Trump said on Saturday that Walmart should "" and Treasury Secretary Scott Bessent told 온라인카지노사이트's "Meet the Press" on Sunday CEO Doug McMillon told him the company would absorb some of the levies.
• — The streaming giant shed about 2% following . The bank cited the stock's recent outperformance.
• — The social media stock fell nearly 7% on the back of a downgrade at Wells Fargo to equal weight from overweight. Disruptions in search traffic are likely to become permanent as integrates full artificial intelligence search capabilities, the bank said.

To see more names moving in the premarket, .

—Michelle Fox

UBS upgrades Archer-Daniels-Midland to buy on 'underappreciated policy tailwinds'

UBS has upgraded agriculture commodities company Archer-Daniels-Midland to buy as the bank sees "underappreciated policy tailwinds" lifting the stock.

UBS has raised it stock price target for Archer-Daniels-Midland to $60, implying more than 19% upside from Friday's close of $50.13 per share.

The budget reconciliation bill drafted by the House Ways and Means Committee would end production tax credits for renewable diesel fuel that uses imported feed stocks. This will lift demand for domestic soybean oil, benefiting Archer-Daniels-Midland.

UBS sees bad news associated with Archer-Daniels-Midland's nutrition segment priced in at this point and its earnings have bottomed. The company has underperformed the S&P 500 by about 75% over the past two years.

— Spencer Kimball

S&P 500's upside-downside ratio is 'not particularly attractive' anymore, says Trivariate Research

Stocks have made a stunning comeback in the past few days, but Trivariate Research is dubious that this rally has legs.

"We appreciate that there can be meaningful disconnects between price action and fundamentals. However, we are starting to think the upside-downside ratio for the is not particularly attractive," the firm wrote in a Sunday note.

Founder Adam Parker particularly pointed to tariff risks as one positive headwind going forward.

"We expect many companies to disappoint in the second half of this year, and see the risk-reward as skewed to the negative for risk-taking today. The median stock saw some gross margin contraction in April, despite the strong market rally. The median company's gross margins fell to 45.5% in April, down nearly 100bps from the two months earlier," he wrote. "Given tariffs may cause some companies to be challenged in passing along pricing without a commensurate loss in unit demand, and/or they might see rising input costs in certain areas, we think there is risk to lower margins for more than half the S&P 500 in the coming quarter."

— Lisa Kailai Han

Loop Capital upgrades Charter Communications

Loop Capital is more optimistic on Charter Communications following its deal to .

The firm upgraded Charter to buy from hold in a Sunday note, and raised its price target to $510 per share from $430. Loop's forecast implies about 19% upside from Friday's $427.25 close.

"The transaction is expected to be accretive, reduce leverage, and deliver scale efficiencies - positioning CHTR as the largest domestic cable operator," analyst Alan Gould said. "Additionally, CHTR's Life Unlimited rebrand, which provides a converged broadband/mobile offering as well as customer service guarantees, is showing early traction."

— Brian Evans

30-year Treasury yield tops 5% after U.S. debt downgrade

The U.S. 30-year Treasury bond yield after Moody's slashed its rating on U.S. credit.

The yield sat at 5.023%, up more than 12 basis points on the day. Other Treasurys also lost value, pushing their yields higher. The benchmark 10-year Treasury note yield traded at 4.546%, while the 2-year yield hovered just above 4%.

— Fred Imbert

U.K. bond yields rise after UK-EU deal

British government bond yields are also on the rise in the wake of the EU and the U.K. to reset their post-Brexit relations.

Yields on 10-year U.K. government bonds, known as gilts, were up by around 7 basis points at 9:58 a.m. in London.

Bond yields and prices move in opposite directions.

— Chloe Taylor

European stocks open lower

European shares opened in negative territory on Monday, with the Stoxx 600 down 0.4% shortly after the opening bell.

Most sectors and all major bourses saw losses, with the and the shedding 0.5%, while Germany's traded 0.2% lower.

— Chloe Taylor

Trump tells Walmart to 'eat the tariffs'

President Donald Trump at on social media over the weekend.

"Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain," Trump wrote in a Saturday post on Truth Social.

"Between Walmart and China they should, as is said, 'EAT THE TARIFFS,' and not charge valued customers ANYTHING," he added in the post. "I'll be watching, and so will your customers!!!"

Walmart said in a statement following the post that it was working to keep prices as low as can be. That comes after the company's finance chief warned last week that consumers as a result of Trump's tariff policy.

"We have always worked to keep our prices as low as possible and we won't stop," Walmart said in the statement. "We'll keep prices as low as we can for as long as we can given the reality of small retail margins."

— Alex Harring, Melissa Repko and Leslie Josephs

Stocks come off winning week

Stocks recorded as investors applauded the U.S.-China deal to temporarily slash tariffs.

The surged more than 7%. The jumped over 5% and posted a five-day winning streak. The rallied more than 3% last week and climbed into positive territory for 2025.

— Alex Harring

Stock futures are lower

Stock futures traded in the red shortly after 6 p.m. ET.

Dow futures lost 283 points, or 0.7%. S&P 500 futures fell 0.7%, while Nasdaq 100 futures slid 0.8%.

— Alex Harring