The S&P 500 (SPX) managed to eek out a 0.09% gain on Monday, extending its winning streak, although just barely, to six consecutive days. The benchmark index was down by as much as 1.1% this morning.
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On Friday, credit rating agency Moody’s (MCO) lowered the U.S. credit rating to Aa1, the second-highest level, from Aaa, the highest level. Moody’s cited rising government debt and interest burdens as two main reasons for the lower rating. Furthermore, the downgrade caused the 30-year Treasury yield to spike above 5% this morning, although it has since fallen below it.
Meanwhile, President Trump held a two-hour long phone call with Russia President Vladimir Putin. While Trump wasn’t able to convince Putin to enact a 30-day unconditional ceasefire, he said that the conversation still went “very well.” After the call, Trump posted on Truth Social that Russia-Ukraine ceasefire negotiations would begin immediately.
In the same post, Trump noted that Russia would like to have “largescale TRADE” with the U.S. following the conclusion of the war. Russia’s “potential is UNLIMITED,” said Trump, adding that trade with the U.S. could create wealth and many jobs for the country.
While no tariff deal announcements have been made yet this week, China issued a response to the U.S. discouraging the use of Huawei Ascend chips. The world’s second-largest economy believes that the guidance “seriously undermine the consensus reached during the high level Geneva between the China and the U.S,” characterizing it as a “discriminatory measure.” In addition, China said that it would be forced to retaliate if the U.S. continues to harm its interests.
The S&P 500 is now up by 1.47% during the past five trading days.
