The big 3 indexes closed higher yesterday, led by the Dow. The S&P 500 extended their winning streak to day 6. Remember, just a couple of weeks ago we were all celebrating the S&P's longest winning streak (9 days) in 20 years. Could we be approaching that again? We shall see.

All of the indexes opened under pressure yesterday after Friday's announcement by Moody's that they cut their credit rating on the U.S. to Aa1 (their second highest credit rating, down from their highest Aaa rating). Although, this was hardly a surprise given that the two other large credit rating agencies, Standard & Poor's and Fitch Ratings, had lowered their credit ratings as early as 2011 and 2023 respectively. Both of them lowered it from their highest rating (AAA) to their second highest rating (AA+). So Moody's downgrade simply brought them into alignment with the other two.

Quite frankly, the only real surprise was what took so long for these three rating agencies to get on the same page?

Either way, Moody's cited rising government debt and increasing interest payments on the debt for their decision. Not unlike the catalyst for the downgrades by the other firms in previous years. A narrative that has only gotten worse over time.

In other news, the House Budget Committee advanced the Administration's "big beautiful bill" on Sunday night. I mention this because it tackles many top priorities of the White House, including renewing the 2017 tax cuts (and then some), which expires at the end of the year. And you can be sure, proponents of the bill will point to the importance of the tax cuts, while critics will point to the ballooning debt. It's expected to be on the House floor for a full vote later this week.

But for now, the market appears to be more focused on the expectation for more trade deals to be announced in the coming weeks.

This, along with the previous weekend's U.S./China trade agreement, which dramatically slashed tariffs on both countries for 90 days, and paved the way for further talks in the coming weeks, and the trade deal with the U.K., has turned panic into a fear of missing out.

And it makes sense. If fears of a trade war sank stocks, then the removal of a trade war should send stocks back up. And if it results in even more trade and opportunity for U.S. markets, even better. Hence the rush back into stocks.

Couple that with easing inflation, a robust jobs market, and another solid earnings season with projections for more earnings growth to come in the come quarters, and you've got a market poised to breakout to new all-time highs.

See you tomorrow,