For a brief moment, it appeared that the prophets of doom on Wall Street had finally received the vindication they craved. Moody’s Investors Service, in a move many said was inevitable, stripped America of its coveted top-tier credit rating late last Friday. Predictably, the liberal media and Biden loyalists crowed in delight, eager to paint this as yet another sign of America’s fading glory.
But as always, the American economy had other ideas. By the close of trading Monday afternoon, the S&P 500 had roared back from an overnight plunge, posting its sixth consecutive winning day. The so-called “Sell America” trade fizzled out quicker than the latest woke Hollywood blockbuster, as investors stepped in and bought the dip. Even Moody’s, the last of the big three rating agencies to yank the AAA rating, couldn’t derail this America First economy.
“The economy is looking good, inflation is relatively tame, the outlook for corporate earnings is strengthening,” said Jose Torres, senior economist at Interactive Brokers. “Investors weren’t going to allow that downgrade to halt the market’s winning streak.” Indeed, investors know a strong and confident America when they see it.
The S&P 500 finished Monday up slightly by 0.1%, closing at 5,963.60. The Dow Jones Industrial Average gained 137 points to settle at 42,792.07, and the Nasdaq Composite inched ahead to 19,215.46. It’s clear: Wall Street believes in America again because President Trump’s America First policies have revitalized the fundamentals—low inflation, solid earnings, and manufacturing coming back home.
Let’s not forget that the Moody’s downgrade was hardly news. Everyone on Wall Street already knows the United States faces fiscal challenges, largely thanks to decades of reckless spending and Biden-era giveaways. But investors are smarter than that—they’ve learned to separate real economic strength from mere headlines.
President Trump has repeatedly demonstrated his commitment to America First principles: securing our borders, reviving our manufacturing base, renegotiating trade deals that prioritize American jobs, reforming education to ensure our children have a future, and ending endless foreign wars. These policies are paying dividends, and the market knows it. Investors understand that the real economy—Main Street, not just Wall Street—is stronger today than it’s been in years.
The dollar did feel some pressure, with the ICE U.S. Dollar Index down 0.7% by market close, but this reflects global uncertainty rather than American weakness. Meanwhile, defensive stocks like healthcare and consumer staples led the gains, indicating a cautious optimism—not fear. Even gold, traditionally a safe-haven asset, saw just a modest uptick, meaning investors are confident but prudent.
Yes, the Cboe Volatility Index, or “fear gauge,” nudged higher by just over 5%. But this typically signals short-term hesitation rather than long-term anxiety. After all, the U.S. economy continues to outperform expectations, and as the Trump administration doubles down on America First principles, investors have every reason to remain bullish.
Despite the usual naysayers and media fearmongers, Monday’s turnaround proves once again that betting against America is a losing proposition. Biden and his allies may have left our nation weakened, saddled with debt and fiscal irresponsibility, but the resilience of the American spirit—and markets—remains unbroken. Investors are smart enough to look past even a Moody’s downgrade, recognizing that Trump’s economic agenda has set America back on the path to greatness.
Those who shouted “Sell America!” after Friday’s downgrade are now silent, watching quietly from the sidelines as American stocks continue their march upward. The message from investors is loud and clear: America is still the best bet in the world, and under President Trump’s leadership, our best days are still ahead.
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