{"id":49470,"date":"2025-05-19T03:02:14","date_gmt":"2025-05-19T08:02:14","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-watch-stocks-tumble-as-moodys-downgrade-shakes-investor-confidence\/49470\/"},"modified":"2025-05-19T03:02:14","modified_gmt":"2025-05-19T08:02:14","slug":"market-watch-stocks-tumble-as-moodys-downgrade-shakes-investor-confidence","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-watch-stocks-tumble-as-moodys-downgrade-shakes-investor-confidence\/49470\/","title":{"rendered":"Market Watch: Stocks Tumble as Moody&#8217;s Downgrade Shakes Investor Confidence"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-watch-stocks-tumble-as-moodys-downgrade-shakes-investor-confidence\/49470\/#Major_Indexes_Retreat_Following_US_Credit_Rating_Cut\" >Major Indexes Retreat Following US Credit Rating Cut<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-watch-stocks-tumble-as-moodys-downgrade-shakes-investor-confidence\/49470\/#Bond_Market_Reaction_and_Treasury_Yields\" >Bond Market Reaction and Treasury Yields<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-watch-stocks-tumble-as-moodys-downgrade-shakes-investor-confidence\/49470\/#Key_Earnings_Reports_This_Week\" >Key Earnings Reports This Week<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-watch-stocks-tumble-as-moodys-downgrade-shakes-investor-confidence\/49470\/#Tech_Sector_Spotlight_Nvidias_Upcoming_Earnings\" >Tech Sector Spotlight: Nvidia&#8217;s Upcoming Earnings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-watch-stocks-tumble-as-moodys-downgrade-shakes-investor-confidence\/49470\/#Economic_Data_and_Central_Bank_Decisions\" >Economic Data and Central Bank Decisions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-watch-stocks-tumble-as-moodys-downgrade-shakes-investor-confidence\/49470\/#Market_Outlook_and_Investor_Sentiment\" >Market Outlook and Investor Sentiment<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Major_Indexes_Retreat_Following_US_Credit_Rating_Cut\"><\/span>Major Indexes Retreat Following US Credit Rating Cut<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The stock market is experiencing significant downward pressure today, Monday, May 19, 2025, as investors react to Moody&#8217;s downgrade of US sovereign debt from AAA to Aa1. This marks a notable shift in market sentiment after last week&#8217;s rally fueled by easing US-China trade tensions.<\/p>\n<p>As of the latest trading data, the <b><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average has fallen approximately 350 points (0.8%)<\/b>, while the <b><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a> is down 1.1%<\/b> and the <b>Nasdaq Composite is showing the steepest decline at 1.4%<\/b>.<cscitation citation_id=\"task_1__1\"><\/cscitation> This pullback comes after all three major indexes had turned positive for the year last week, with the Nasdaq jumping over 7% and the S&#038;P 500 gaining 5% during that period.<cscitation citation_id=\"task_1__2\"><\/cscitation><\/p>\n<p>The credit rating downgrade, which occurred late Friday, has cast a shadow over the market&#8217;s recent optimism. Moody&#8217;s cited the growing US budget deficit and concerns about the potential extension of President Trump&#8217;s 2017 tax cuts, which could add approximately $4 trillion to the deficit over the next decade.<cscitation citation_id=\"task_1__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bond_Market_Reaction_and_Treasury_Yields\"><\/span>Bond Market Reaction and Treasury Yields<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The downgrade has had an immediate impact on the bond market, with Treasury yields climbing in response. The yield on the benchmark 10-year Treasury note has risen to 4.523%, up from last week&#8217;s levels.<cscitation citation_id=\"task_1__1\"><\/cscitation> This increase reflects growing investor concerns about US fiscal health and potential borrowing challenges.<\/p>\n<p>Treasury Secretary Scott Bessent attempted to downplay the significance of the downgrade, calling it &#8220;a lagging indicator&#8221; during a Sunday interview on NBC News. However, market participants appear unconvinced, as evidenced by the selling pressure across equity markets.<cscitation citation_id=\"task_1__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_Earnings_Reports_This_Week\"><\/span>Key Earnings Reports This Week<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Amid the market turbulence, investors are closely watching several major earnings reports scheduled for this week, particularly from the retail sector:<\/p>\n<p>&#8211; <b>Home Depot (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=HD\">HD<\/a>)<\/b> reports Tuesday, with analysts expecting insights into consumer spending on big-ticket discretionary items and overall housing market sentiment<cscitation citation_id=\"task_2__3\"><\/cscitation><br \/>&#8211; <b>Lowe&#8217;s (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=LOW\">LOW<\/a>)<\/b> announces results Wednesday, with revenue estimated at $20.95 billion, down only 2% from the previous year<cscitation citation_id=\"task_2__1\"><\/cscitation><br \/>&#8211; <b>Target (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=TGT\">TGT<\/a>)<\/b> reports Wednesday, with revenue projected to be nearly flat at $24.4 billion, as the stock has dropped over 26% year to date<cscitation citation_id=\"task_2__1\"><\/cscitation><br \/>&#8211; Other notable companies reporting include <b>TJX Companies, Medtronic, Snowflake<\/b> (Wednesday) and <b>Intuit, Analog Devices, Workday, Autodesk<\/b> (Thursday)<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<p>Market analysts will be particularly focused on whether retailers echo Walmart&#8217;s recent warning that tariffs will lead to price increases for consumers.<cscitation citation_id=\"task_1__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tech_Sector_Spotlight_Nvidias_Upcoming_Earnings\"><\/span>Tech Sector Spotlight: Nvidia&#8217;s Upcoming Earnings<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the technology sector, <b>Nvidia (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NVDA\">NVDA<\/a>)<\/b> remains a focal point for investors ahead of its first-quarter fiscal 2026 earnings announcement scheduled for May 28. The stock has experienced volatility in 2025 but has jumped 27% in the past three weeks.<cscitation citation_id=\"task_3__1\"><\/cscitation> <\/p>\n<p>Analysts expect Nvidia to deliver $43 billion in revenue for the quarter, representing a 65% increase year-over-year.<cscitation citation_id=\"task_3__1\"><\/cscitation> The company recently announced a major partnership with Humain, an AI subsidiary of Saudi Arabia&#8217;s sovereign wealth fund, which will involve the sale of &#8220;several hundred thousand&#8221; advanced GPUs over the next five years.<cscitation citation_id=\"task_3__3\"><\/cscitation><\/p>\n<p>The temporary reduction in US-China tariffs could potentially benefit Nvidia, as reports indicate Chinese clients placed orders for at least $16 billion worth of Nvidia&#8217;s H20 AI GPUs in the first quarter of 2025.<cscitation citation_id=\"task_3__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Economic_Data_and_Central_Bank_Decisions\"><\/span>Economic Data and Central Bank Decisions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This week&#8217;s economic calendar includes several important data releases that could influence market direction:<\/p>\n<p>&#8211; S&#038;P Global will release manufacturing and services PMI on Thursday<br \/>&#8211; The National Association of Realtors will report existing-home sales on Thursday<br \/>&#8211; The Census Bureau will release new home sales data on Friday<cscitation citation_id=\"task_1__1\"><\/cscitation><br \/>&#8211; Eurozone Final April CPI data will be released today<br \/>&#8211; China and Australia are expected to make rate announcements<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Market_Outlook_and_Investor_Sentiment\"><\/span>Market Outlook and Investor Sentiment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite today&#8217;s selloff, some positive economic indicators remain. Last week&#8217;s retail sales rose 0.1% in April, in line with consensus estimates, while the producer price index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=PPI\">PPI<\/a>) showed a sharp decline of 0.5% sequentially in April, compared to analysts&#8217; expectations of a 0.3% increase.<cscitation citation_id=\"task_3__2\"><\/cscitation><\/p>\n<p>However, consumer sentiment has deteriorated, with the preliminary US May University of Michigan consumer sentiment survey falling to 50.8, its second-lowest level ever. Nearly 75% of respondents expressed concerns about tariffs, and consumers are anticipating a 7.3% annual price increase next year, the highest since 1981.<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<p>As markets navigate this challenging landscape, investors are balancing the positive developments in US-China trade relations against growing concerns about US fiscal health and potential inflationary pressures. The coming days will be crucial in determining whether today&#8217;s selloff represents a temporary correction or the beginning of a more sustained market downturn.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major Indexes Retreat Following US Credit Rating Cut The stock market is experiencing significant downward pressure today, Monday, May 19, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[94],"tags":[633,1195,3764,3878,3898],"class_list":["post-49470","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-update","tag-nvda","tag-low","tag-ppi","tag-hd","tag-tgt"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/49470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=49470"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/49470\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50312"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=49470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=49470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=49470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}