S&P 500 (NYSEARCA: SPY) Live: Markets Surrender Ground on US Debt Downgrade

By Gerelyn Terzo Updated May 19, 1:40PM EDT · Published May 19, 10:27AM EDT

Key Points

The broader markets are under pressure after one of the credit rating agencies downgraded U.S. debt. Today’s declines come on the heels of a positive week in the stock market.

Live Updates

Tariff Sensitivity

May 19, 2025 at 1:40 PM EDT | Gerelyn Terzo

Analysts at Canaccord Genuity issued a report indicating that the stock market’s uncertainty is likely to persist until mid-summer, coinciding with the expiration of tariff pause deadlines. The SPY ETF has made its way into positive ground and is trading up fractionally.

Ray Dalio Responds to U.S. Debt Downgrade

May 19, 2025 at 11:53 AM EDT | Gerelyn Terzo

Billionaire investor Ray Dalio, founder of Bridgewater Associates, issued a warning Monday, reportedly stating that Moody’s downgrade of the U.S. sovereign credit rating doesn’t fully capture the danger to U.S. Treasuries. Dalio argued that the credit agency is overlooking the significant risk of the federal government resorting to turning on the money printer to service its debt.

The SPY ETF is currently down 0.19%.

Retail Earnings on Deck

May 19, 2025 at 10:28 AM EDT | Gerelyn Terzo

With the earnings season still in full swing, corporate America takes center stage this week. Investors await reports from major retailers including Home Depot (NYSE: HD | HD Price Prediction), Target (NYSE: TGT), and TJX Companies (NYSE: TJX), the latter boasting an 11% year-to-date increase in its stock price. A key focus will be comparable store sales, offering a pulse on consumer spending as elevated interest rates persist despite indications of easing inflation.

This article will be updated throughout the day, so check back often for more daily updates.

The stock market continues its seesaw pattern, experiencing another downturn. Today’s negative catalyst was a credit rating on U.S. debt by rating agency Moody’s, lowering it one step to Aa1. This move followed a positive week fueled by optimism around U.S.-China trade developments in which the S&P 500 was positive for five straight trading sessions, resulting in a 5% gain.

Moody’s said the downgrade was due to a combination of the budget deficit and high interest rates. President Trump clapped back, saying the rest of the world remains confident in the U.S. economy. The credit downgrade triggered a rise in Treasury yields, with the 30-year Treasury breaching the 5% mark, and subsequently pressured stocks downward. The SPY ETF is down fractionally. Each of the three major stock market averages are narrowing their losses this morning.

Most sectors of the economy are facing headwinds, including a 1.4% dip in technology. The influential Magnificent Seven stocks are largely in negative territory, with Apple (Nasdaq: AAPL) falling 2.8% amid scrutiny of its potential AI partnership with China’s Alibaba.

Here’s a look at where the markets stand:

Dow Jones Industrial Average: Down 34.77 (-0.06%)
Nasdaq Composite: Down 90.60 (-0.45%)
S&P 500: Down 17.72 (-0.30%)

Market Movers

After Walmart (NYSE: WMT) announced impending price hikes due to tariffs, Treasury Secretary Scott Bessent countered, suggesting the retailer would “absorb some of the tariffs.” WMT shares are currently down 2.3%.

Palantir Technologies (Nasdaq: PLTR) is down 3.8% but remains near its recent record peak of $130.18.

Bucking the trend, Novavax (Nasdaq: NVAX) surged 25.9% today after receiving regulatory approval for its COVID-19 vaccine.

Reddit (NYSE: RDDT) shares are trading lower by 4.4% following an analyst downgrade.

Take-Two Interactive Software (Nasdaq: TTWO) is climbing 3.7% higher today. Wedbush Securities analysts lifted their price target on the stock to $269 from $253 per share with an “outperform” rating attached.

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About the Author Gerelyn Terzo →

Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.