Investors basically shrugged in Monday’s trading as the stocks were mostly over, and investors lowered their U.S. credit ratings during Monday’s trading.

The Dow Jones industrial average rose by more than 130 points, up 0.32%. S&P closed 0.09% more widely, while technology-heavy Nasdaq stock rose 0.02%.

Moody's became the third and last major rating agency to downgrade U.S. debt, reducing it from AAA to AA1 later on Friday. Credit rating agencies help determine how a country reliably repays its debts.

However, the market for U.S. government debt remains stable so far. As of 4 p.m., the government's benchmark loan assets, which were the government's benchmark loan assets, climbed to 4.46% higher than a few percentage points traded on Friday. That's well below the latest high of 4.59% briefly last month.

“The downgrade itself does not seem to have excited the market,” analysts at Capital Economics Research Consulting wrote in a note.

Analysts say that while government debt yields (or the rate of return investors need to lend) briefly climbed on Monday, “the move is not huge.” They noted that similar to the previous U.S. credit downgrade, the market occurred in 2011 and 2023.

While stock and bond buyers were mostly unscathed on Monday, homebuyers now face higher mortgage costs due to downgrades. On Monday, the average interest rate for popular 30-year fixed-rate loans reached 7.04% on Monday, according to Mortgage News. That was the highest level since April 11.

"It's not only about the market shift in Friday's closing ceremony, but also about the additional weaknesses seen this morning," said Matthew Graham, chief operating officer of Mortgage News Daily. This makes the day after day jump quite large and changes a bigger situation.

Moody's said in a downgrade speech that over the years, the U.S.'s ability to control its balance sheet has eroded, forcing higher yields.

"The continuous U.S. government and Congress failed to reach consensus on a trend to reverse large annual fiscal deficits and growing interest costs," it said. "We believe that years of reduction in material reductions in mandatory spending and deficits will be due to fiscal recommendations currently under consideration."

But while Friday’s downgrade won international headlines, individual stock buyers continue to push the market, helping to offset the balanced decline.

These “retail” buyers are largely individual investors, rather than larger companies like pension funds or hedge funds, and stocks have been dumped since President Donald Trump’s “liberation day” tariffs announced.

A popular investment vehicle by Vanguard has become an agent for retail purchases, indicating that retail merchants have little appetite for selling.

The United States never comes out of the woods. First, the downgrades in previous years have hardly changed the fiscal trajectory of the United States. Meanwhile, third-party budget experts such as the Congressional Budget Office and Pennsylvania Budget Model said the spending bill Trump sought is now working in Congress and may not solve the plight of the United States.

With stocks driving, one of Wall Street’s most prominent voices warns them that it might be lowered. According to CNBC, JP Morgan CEO Jamie Dimon told investors on Monday that he believes the odds of staging in the U.S. economy (which he calls a "basically inflationary recession") are about twice as much as the market thinks - Scenario Dimon said it would cause a company's revenue to fall.

But in a call with reporters Monday, the White House dismissed concerns about the deficit, saying they did not state that Trump's economic policy could generate and ignore what he said was ongoing government spending cuts in government efficiency and revenue cuts from tariffs.

Others still don't believe the rose-colored picture.

"In the short term, the United States remains a global reserve currency and wealth storage," wrote Mike Goosay, chief investment officer and head of global fixed income, in the major asset management financial group.

"But the bigger problem is long-term," he continued. "If global investors start to question the role of the United States in the global order, it is that we can see the real consequences."