By Chibuike Oguh
NEW YORK (Reuters) -U.S. shares completed close to the unchanged mark on Monday with market sentiment weakened by the downgrade of the federal authorities’s good sovereign credit standing owing to its large debt profile.
Moody’s slashed the U.S. sovereign credit standing to “Aa1” from “Aaa” after markets closed on Friday, citing the federal government’s $36 trillion excellent debt and curiosity.
“It’s to be understood that markets have been going to have a bit little bit of response as a result of the (Moody’s) announcement was after markets closed,” mentioned Talley Leger, chief market strategist at The Wealth Consulting Group. “However my view is that the ‘sell-America’ commerce is overdone.”
Equities had rebounded from declines earlier within the session to complete close to the unchanged mark. Nonetheless, the benchmark S&P 500 notched its sixth straight classes of positive aspects.
Seven out of the 11 S&P sectors superior led by healthcare, shopper staples, industrials, supplies and utilities shares.
Vitality shares have been the largest losers along with shopper discretionary.
The Dow Jones Industrial Common rose 137.33 factors, or 0.32%, to 42,792.07, the S&P 500 gained 5.22 factors, or 0.09%, to five,963.60 and the Nasdaq Composite gained 4.36 factors, or 0.02%, to 19,215.46.
Benchmark 10-year Treasury yields gained on considerations {that a} U.S. tax invoice will enhance the debt load by greater than beforehand anticipated. The yield on benchmark U.S. 10-year notes rose 1 foundation level to 4.449%.
President Donald Trump’s sweeping tax-cut invoice had gained approval from a key congressional committee on Sunday.
TXNM Vitality rose 7% after the utility mentioned it could be acquired by the infrastructure unit of Blackstone in an $11.5-billion deal.
Novavax shares jumped 15% after the corporate secured a long-awaited U.S. regulatory approval for its COVID-19 vaccine.
Regeneron Prescription drugs rose 0.4% after it introduced it would purchase genomics agency 23andMe Holdings for $256 million via a chapter public sale.
Declining points outnumbered advancers by a 1-to-1 ratio on the NYSE. There have been 216 new highs and 50 new lows on the NYSE.
The S&P 500 posted 26 new 52-week highs and no new lows whereas the Nasdaq Composite recorded 57 new highs and 57 new lows.
Quantity on U.S. exchanges was 19.41 billion shares, in contrast with the 17.34 billion common for the total session over the past 20 buying and selling days.
(Reporting by Chibuike Oguh in New York; further reporting by Shashwat Chauhan and Kanchana Chakravarty in Bengaluru; Modifying by Varun H Okay, Pooja Desai and Aurora Ellis)
