The Dow Jones Industrial Average and other major stock indexes fell sharply Monday, as Wall Street reacted to Moody's downgrade of the U.S. government credit rating. Among the losers, Apple, Nvidia and Tesla all sold off on the stock market today.
After the opening bell, the Dow Jones Industrial Average dropped 0.6%, or more than 250 points. The S&P 500 lost 1%, and the tech-heavy Nasdaq composite tumbled 1.4%.
The 10-year Treasury yield jumped to 4.56% early Monday. And oil prices dropped, as West Texas Intermediate futures traded around $62.45 per barrel.
Among exchange traded funds, the Invesco QQQ Trust moved down 1.4%, while the SPDR S&P 500 ETF fell 1% after the open.
Late Friday, Moody's Investors Service downgraded the U.S. government credit rating from the top-level Aaa to Aa1, saying this "reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns."
That comes more than a year after Moody's lowered its outlook on the U.S. debt rating to negative. Fitch Ratings and S&P Global Ratings had already stripped the U.S. government of their top credit ratings.
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Stock Market Today: Apple, Nvidia, Tesla Sell Off
IPhone maker Apple threatened to extend a losing streak to four sessions Monday, with a 2.4% morning drop. Shares, however, remain above their 50-day moving average.
During last week's bullish gains, Nvidia decisively regained its long-term 200-day moving average, which was a key resistance level. But Nvidia stock tumbled 2% Monday morning.
Finally, Tesla skidded more than 4% in early action Monday, after closing Friday at its highest level since Feb. 20. Led by Chief Executive Elon Musk, the electric-vehicle maker remains around 28% off its record high of 488.54, reached on Dec. 18.
Elsewhere, key earnings movers this week include Home Depot, Lowe's and Target, along with Palo Alto Networks, Snowflake and Workday.
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Dow Jones Rises 332 Points
On Friday, blue chips on the Dow Jones Industrial Average climbed 0.8%, or 332 points. The S&P 500 gained 0.7%, and the Nasdaq composite moved up 0.5%.
Ongoing stock market strength makes now an important time to read IBD's The Big Picture column for how to handle the current market conditions and to track the updated exposure level.
Among the best companies to watch in the current stock market are Birkenstock, Spotify, Robinhood and Axon Enterprise
Along with Apple and Nvidia, Dow Jones components also making notable moves this week were Amazon.com and Microsoft.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Investors also can find potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones Stocks: Microsoft Hits Buy Point
Shares of Dow Jones component Microsoft have shot up over the last few weeks, bullishly retaking their 200-day line for the first time since Jan. 29 and clearing a 448.38 buy point in a cup base, according to MarketSurge chart analysis. Microsoft stock declined 0.9% Monday.
Outside the Dow, Birkenstock surged last week, moving up the right side of a cup base that has a 62.66 buy point. Birkenstock shares lost 1% in morning action.
Recent IBD Stock Of The Day and IBD SwingTrader stock Spotify is moving out of buy range above a 621.20 double-bottom entry. Spotify shares fell nearly 2% early Monday.
IBD Leaderboard watch list stock Robinhood has cleared an aggressive alternate entry of 51.07 in recent sessions and is approaching a 66.91 buy point in an abnormally deep cup base, according to IBD MarketSurge chart analysis. Robinhood shares sold off more than 4% Monday.
Finally, Taser-maker Axon is breaking out past a 715.99 buy point following last week's gains. Axon stock was down 1.3% Monday.
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Stock Market: Companies To Watch
These are four stocks in or near buy zones in Monday's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Microsoft | 448.38 | Cup base | |
| Robinhood | 66.91 | Cup base | |
| Birkenstock | 62.66 | Cup base | |
| Spotify | 621.20 | Double bottom |
Source: IBD Data as of May 16
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Dow Jones Leaders: Amazon
Magnificent Seven stocks continue to rebound from their recent lows as Wall Street reacts to more optimism after President Trump's tariffs sent them reeling. One of them, Dow Jones component Amazon, is building a cup base with a 242.52 buy point.
Amazon stock lost nearly 2% in morning action on Monday.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
