U.S. Markets Slip After Credit Rating Downgrade; Gold Gains Ground

U.S. Markets: Last Week Gains Until Friday After Closing Bell, Drastic Drop Off to Clear Calls, a Set Up for a Rapid Rise on Monday Opening Bell…

May 19, 2025 – Wall Street — U.S. stocks started the week in the red, as investor sentiment took a hit following Moody’s recent downgrade of the U.S. credit rating. The move sparked renewed concerns over fiscal stability, leading to a shift away from equities and into safer assets like gold.

Market Snapshot

• Dow Jones Industrial Average: Down approximately 0.6% in morning trading.
• S&P 500: Off by about 0.5%.
• Nasdaq Composite: Lower by 0.7%.

Bond yields ticked higher as investors reassessed risk, while broader market sentiment weakened on fears of long-term economic pressure stemming from the downgrade.

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SPY – S&P 500 ETF

The SPDR S&P 500 ETF Trust (SPY), a popular tracker of the S&P 500 index, was down 0.64%, trading at $590.41. It opened at $588.10, briefly climbed to $590.44, and dipped as low as $586.18 so far today.

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Gold Climbs on Safe-Haven Demand

Gold prices moved higher as investors sought protection from market volatility. The SPDR Gold Shares ETF (GLD) rose over 1%, trading at $297.39. It hit an intraday high of $299.39 after opening at $297.85.

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Oil Slightly Lower on Global Growth Concerns

Crude oil prices eased, pressured by slowing demand outlooks in both the U.S. and China. The United States Oil Fund (USO) slipped by 0.19% to $67.97, with a trading range between $67.29 and $68.31.

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Top Market Headlines

• Moody’s Cuts U.S. Credit Rating – Investors reacted swiftly to the downgrade, sparking declines across equity markets and a rise in bond yields.
• Gold Rises as Investors Seek Safety – Geopolitical uncertainty and economic concerns lifted gold prices above key levels.
• Oil Slips Amid Demand Worries – Fears over weaker global growth continued to weigh on crude prices.