U.S. Markets on Edge: Moody's Slashes U.S. Credit Rating Amid Tax Bill Drama

U.S. stocks were all over the place on Monday as investors freaked out over Moody's Ratings yanking the U.S. of its last triple-A credit grade. And if that wasn't enough, lawmakers are pushing a tax bill that's set to blow up federal deficits even more!

The S&P 500, fresh off a five-day winning spree, barely budged, while the Nasdaq Composite edged up by a measly 0.01%. The Dow Jones Industrial Average managed a 0.3% gain, thanks to UnitedHealth Group shares bouncing back.

Moody's dropped a bombshell late Friday, downgrading U.S. debt to AA1 and pointing fingers at "persistent, large fiscal deficits" and skyrocketing interest costs.

Just when you thought it couldn't get crazier, the House Budget Committee greenlit a tax-and-spending bonanza from President Trump. It's all about extending cuts and cranking up spending, sending deficit projections through the roof.

The 10-year Treasury yield shot up to a wild 4.56%, the highest in over a month, before chilling out at 4.46%. Meanwhile, 30-year Treasurys flirted with 5% before settling near 4.95%. The dollar index took a 0.7% nosedive, but gold went wild, jumping 1.5% to $3,235 an ounce.

Tech stocks, the darlings of recent gains, were all over the place. Tesla plummeted 2% after last week's insane 17% rally. Apple slid 1.5%, while Nvidia, Alphabet, and Meta took hits too. Microsoft and Amazon? They just barely edged higher.

Bitcoin is surging

Hold onto your hats, Bitcoin (BTC) blasted off to $105,400, dragging Strategy shares up by 3%. But it wasn't all sunshine and rainbows—Palantir, AMD, and Super Micro Computer each tanked over 2%.

JPMorgan's CEO Jamie Dimon dropped a warning bomb, saying the full economic impact of tariffs is still lurking out there. And Fed officials? They're playing it cool, signaling no immediate interest rate changes amidst all this madness.

Global markets? They're a mixed bag. European stocks edged up, but Asia took a beating. The European Union slashed its growth outlook, and Diageo's bracing for a $150 million hit from tariffs.