Investors largely shrugged off a downgrade of the U.S.'s credit rating in Monday trading as stocks ended the day mostly flat.

Moody’s downgraded the United States’ credit rating on Friday, and Wall Street is now bracing for the fallout. The downgrade dragged America down one notch from its top-tier rating. It was the final confirmation that the federal government’s $36 trillion debt is now impossible to ignore.

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.

Treasury Secretary Scott Bessent downplayed the U.S. credit downgrade as a "lagging indicator" of economic and fiscal conditions, after Moody's took the U.S. off its top tier.

U.S. Treasury Secretary Scott Bessent warned Sunday that some of America’s trading partners could soon face a sharp hike in tariff rates, and dismissed Moody’s downgrade of the U.S. government’s credit rating.