U.S. stocks closed higher after an unsurprising US credit rating downgrade. Treasury yields rise. S&P 500 extends winning streak to six days.

All three major U.S. stock market indexes rose Monday afternoon, following an earlier selloff sparked by long-dated Treasury yields surpassing the 5% mark after the financial ratings agency Moody’s downgraded the U.S. government’s credit rating late last week, citing rising debt and interest payment ratios.

Moody’s MCO adjustment to the U.S. government’s credit rating was from Aaa to Aa1, a notch down on the firm’s 21-notch rating scale. The firm cited the increase in government debt over the past 10 years, as well as interest-payment ratios that have reached levels significantly above countries with similar ratings, as the reasons.

Local shares tumbled yesterday below the 6,400 level amid persisting negative sentiment following Moody’s credit rating downgrade of the US.

After recovering from an initial jolt, U.S. stocks drifted through quiet trading following the latest reminder that the U.S government may be hurtling toward an unsustainable mountain of debt.