The Dow Jones Industrial Average managed to eke out a gain while other indexes fell Monday after the U.S. suffered yet another downgrade to its debt. Among Dow stocks, Walmart slipped after Treasury Secretary Scott Bessent spoke about the retail giant's approach to tariffs. UnitedHealth fought back while Apple and Tesla lagged on the stock market today.
The Dow managed to reverse for a 0.2% rise in recent action. UnitedHealth fared best here as it rose just over 6%, but remains down around 39% so far this year and below all its moving averages. Procter & Gamble was the next-best performer with a nearly 1% lift. Nike lagged most as it skidded about 2%, with Apple suffering a similar decline.
The Nasdaq composite also came off lows but remained down 0.3%. Gilead Sciences and bitcoin play Strategy outperformed with gains of roughly 3% and 2%, respectively. AppLovin and Dexcom also prospered with lifts of more than 1% each.
Grail lagged with a decline of nearly 8% while electric-vehicle giant Tesla skidded more than 3%.
Stock Market Today: Energy, Consumer Discretionary Lag
The S&P 500 narrowed its losses to 0.1%. Nearly all of the benchmark index's sectors were lower on the stock market today. Energy and consumer discretionary were hit hardest. Consumer staples and health care, both of which are defensive areas, made the best gains.
Moderna and Dollar General were among the S&P's best performers. The former stock was up nearly 7% while the latter gained nearly 5%.
Utility stock AES lagged, dropping nearly 5% despite coming off lows. Solar play First Solar dropped around 5% while Palantir Technologies fell more than 3%.
Volume was mixed, falling on the New York Stock Exchange but rising on the Nasdaq vs. the same time on Friday.
The Russell 2000 index was bitten by the bears, falling nearly 1%. The index continues to trade above its short-term and 50-day moving averages, but remains below its 200-day line.
Growth stocks were down but well off lows for the day, with the Innovator IBD 50 exchange traded fund dipping 0.5%. Its gain for the year now sits at just over 2%.
Outside Dow Jones: More Stocks Test Buy Points
A number of issues were flirting with entries despite the day's challenging action. Payments stock Visa is in a buy zone above a consolidation entry of 366.54, MarketSurge analysis shows.
This is an early-stage base. Such patterns are more likely to net good gains for investors, Investor's Business Daily research has found.
Visa was already above an aggressive alternate entry of 351.86. The stock is bullishly trading above its 21-day line as well as its 50-day moving average.
Strong fundamental and technical performance has netted the stock an IBD Composite Rating of 96 out of a best-possible 99. Earnings are seen rising 13% this year and 12% in 2026.
Noteworthy backers include the lauded Fidelity Contrafund (FCNTX), the MFS Growth Fund (MFEGX) and Warren Buffett-led Berkshire Hathaway. Visa stock has also just won a place on the prestigious IBD Leaderboard list of top stocks.
Ollie's Flirts With Buy Point
Discount retailer Ollie's Bargain Outlet, meanwhile, is flirting with a weekly chart consolidation entry of 119.76.
The relative strength line is bending higher but remains off recent highs for now.
All-around performance is good, with the stock's Composite Rating sitting at 92. However, earnings are a weakness, with its Earnings Per Share Rating coming in at 57 out of 99.
While per-share earnings fell 3% in the most recent quarter, full-year profits are expected to rise 14% in fiscal 2026. In total, 68% of shares are held by funds, according to MarketSurge data.
10:58 a.m. ET
Stock Market Today: Indexes Fall, Yields Up After U.S. Downgrade
The stock market opened lower after Moody's Investors Service downgraded the U.S. government credit rating from the top-level Aaa to Aa1 after the close Friday.
It said 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."
As a result, U.S. Treasury yields were higher across the board. The 10-year Treasury note popped nine basis points to 4.53%, while the 2-year inched up two basis points to 4%. The 30-year Treasury yield briefly rose 13 basis points to 5.03%. However, it backed off this level, and was up 10 basis points to 5%.
"(Moody's) cited the financing challenges tied to the federal government's growing budget deficit and the ramifications of rolling over existing U.S. debt in a period of high borrowing costs," B. Riley Wealth Management Chief Market Strategist Art Hogan said in a note to clients. "The debt downgrade is pressuring bond prices, sending yields higher, at a time when the economy is already under pressure from President Donald Trump's unfolding tariff policy.
Moody's followed the lead of Fitch Ratings and S&P Global Ratings. The latter two already stripped the U.S. government of its top credit ratings.
Treasury Secretary Bessent said "Moody's is a lagging indicator," during an appearance on NBC's "Meet the Press" on Sunday. He pointed the finger at the Biden administration for the current fiscal challenges.
Walmart Stock Falls After Bessent Tariff Comment
Walmart ended up in the firing line from Trump after Douglas McMillon, the retail giant's chief executive, warned prices would rise due to tariffs.
During the firm's earnings call he said that "given the magnitude of the tariffs," Walmart would not be "able to absorb all the pressure given the reality of narrow retail margins."
Trump lashed out at the company on Truth Social over the weekend, saying that ""between Walmart and China they should, as is said 'EAT THE TARIFFS,' and not charge valued customers ANYTHING."
And it seems the words have already had an effect. Bessent was asked about the issue on "Meet The Press."
"I was on the phone with Doug McMillon, the CEO of Walmart, yesterday, and Walmart is, in fact, going to, as you describe it, eat some of the tariffs, just as they did in '18, '19, and '20," Bessent said.
Walmart stock fell more than 1% on the stock market today. It continues to trade just above a cup-with-handle entry of 96.03, according to MarketSurge analysis.
While the stock has outperformed with a lift of around 7% so far this year, its EPS Rating of 71 is not ideal.
Outside Dow Jones: Insurance Stock Tests Entry
With IBD's recommended exposure level sitting at the 80%-100% level, it's a good idea to keep a watch for breakouts.
Insurance play WR Berkley briefly cleared a cup-with-handle entry of 73.42, MarketSurge analysis shows.
The stock's the relative strength line is bending higher after a recent dip as the handle formed. It also sits clear of its 50-day moving average.
Further, WR Berkley has a strong IBD Composite Rating of 96 out of a best-possible 99. It is in the top 8% of issues in terms of price performance over the past 12 months. It also has seen its price rise roughly 26% so far in 2025.
The stock holds an Earnings Per Share Rating of 87 out of 99. Profits are seen rising by just 4% this year. But analysts see that accelerating to 11% growth in 2026, according to MarketSurge data.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
