U.S. Stocks Resilient Amid Sovereign Rating Downgrade

U.S. stock markets showed resilience despite a downgraded credit rating, ending near unchanged levels. Moody's lowered the U.S. sovereign rating, citing enormous debt, but equities rebounded. Key indices showed slight gains, while Treasury yields rose on concerns of increased debt. Trump’s tax bill and corporate deals influenced market moves.

U.S. stock markets displayed resilience on Monday, closing near unchanged levels despite a downgrade of the federal government's sovereign credit rating by Moody's. The agency cited the government's massive $36 trillion debt. After the downgrade, sentiment weakened but equities rebounded from declines earlier in the session.

The S&P 500 gained 5.22 points to end at 5,964.10, and the Nasdaq Composite ticked up 4.36 points to 19,215.46. Meanwhile, the Dow Jones Industrial Average rose by 137.20 points to finish at 42,791.94. Treasury yields increased, sparking concerns that a U.S. tax bill could further inflate the debt load nearly as expected, with 10-year notes rising 2.2 basis points to 4.461%.

President Donald Trump's ambitious tax-cut legislation gained traction with a key congressional committee on Sunday. Market dynamics were further influenced by TXNM Energy's acquisition deal and notable jumps in Novavax and Regeneron Pharmaceuticals shares due to regulatory and business developments.

(With inputs from agencies.)