Wall Street’s Wild Ride: Dow Bounces Back After US Debt Drama! 🚀💸

by

Wall Street’s Emotional Rollercoaster Continues: Stocks Dip Then Do The Hokey Pokey, USA! 🇺🇸

It’s Monday, and apparently, the stock market woke up with the worst case of the Mondays ever. Stocks started the day lower, because who doesn’t love a little morning chaos? Wall Street decided to be extra dramatic after Moody’s decided to play the role of the Debt-Shaming Ghost and downgraded the US credit rating. 🎭📉

The S&P 500 took a 0.8% nosedive out of bed, with the Nasdaq doing a sad 1% tumble—because apparently losing a little trust in the US makes tech stocks sad. The blue-chip and Dow Jones also threw a tiny hissy fit, dropping more than 200 points each—just a warm-up for the market’s emotional breakdown. Spoiler: It was all a mirage, and by the end of the first 45 minutes, buyers swooped in, turning everything nearly flat—like the stock market finally found its chill.

Meanwhile, the dollar was feeling low, and Treasury yields were doing the hyperactive kid on the playground—spiking like they just saw a ghost. The 30-year Treasury yield is now partying at 5%, the highest since October 2023, and if it climbs nine more basis points, it’ll hit an 18-year high. Yup, it’s basically the stock market’s mood ring. 📈👻

Update

The 30-year yield is now 5.03%—highest since October 2023.

If it goes nine basis points higher, it will be a new 18-year high.

— Jim Bianco (@biancoresearch) May 19, 2025

In case you missed it, Moody’s decided to downgrade the US from Aaa to Aa1. Because why stay classy? They said it’s all about the bad Budget Deficit and heavy debt burden—almost like America’s finance department is binge-watching “Debt: The Reckoning”.

Even with the downgrade, the Federal Reserve played it cool, keeping interest rates right where they are. Trump’s tariff adventures and deals with China and the UK also kept everyone on their toes—because what’s a Monday without some trade drama?

RBC Capital’s Lori Calvasina offered her expert opinion, which basically boiled down to: “It’s mostly symbolic… unless it pushes the 10-year treasury yields higher, then we will all scream and cling to our savings.”

Before the Dow decided to channel its inner rollercoaster, last week was pretty great for U.S. stocks: Nasdaq up 7%, S&P 500 up over 5%, and the Dow, just trying to keep up, rose more than 3%. The market was doing so well, it’s probably still dizzy from all that good news.

Oh, and the 10-year yield also shot above 4.5%, because why not? Stocks got a little spooked and started to lull again. Crypto lovers, don’t worry—Bitcoin took a mini tumble to $102k after briefly flirting with $107k on Sunday. But don’t fret; analysts say it’s just a blip and the crypto party’s not over yet. 🎉💰

Stock Market Rollercoaster

Read More

2025-05-19 17:13