Dow Rises on Home Depot Outlook as S&P Affirms US AA+ Credit Rating
US stocks opened mixed with the Dow Jones Industrial Average up 76 points (0.17%), the S&P 500 trading near flat and the Nasdaq Composite largely unchanged. Investors digested mixed Home Depot earnings—profit missed estimates but shares jumped on stronger full‐year guidance—while awaiting Target and Walmart reports. On the policy front, S&P Global Ratings affirmed the US AA+ credit rating, keeping long‐term Treasury yields around 4.32% (10-year) and 4.91% (30-year). Market participants also focused on Federal Reserve Chair Jerome Powell’s upcoming Jackson Hole remarks amid an 83% CME FedWatch odds of a September rate cut. In the crypto market, Bitcoin bounced off lows near $114,000, reflecting cautious trading in broader equity markets. This combination of corporate earnings, credit stability and Fed rate speculations sets a neutral tone across equity and crypto markets.
Neutral
The affirmation of the US AA+ credit rating and mixed Home Depot results produced limited market catalysts, leading to muted reactions in US stocks and Bitcoin. Historical precedents show that credit rating confirmations by S&P tend to have a neutral impact on equity and bond markets. Similarly, mixed corporate earnings often prompt cautious trading rather than directional moves. With Fed rate cut odds already priced in and geopolitical events offering no clear catalyst, both short-term trading and longer-term positioning are likely to remain balanced, keeping market sentiment neutral.