SMCI low volume, good luck for everyone today.SUPER MICRO COMPUT stock forum
SMCI low volume, good luck for everyone today.
SMCI Morgan Stanley’s Wilson Says Buy US Stock Dips After Moody’s CutInvestors should buy any dips in US stocks fueled by Friday’s credit rating cut, as the trade truce with China has reduced the odds of a recession, according to Morgan Stanley’s Michael Wilson.
The strategist sees a greater chance of a pullback in equities after the downgrade by Moody’s Ratings pushed 10-year bond yields above the key 4.5% level. However, “we would be buyers of such a dip,” Wilson wrote in a note.
S&P 500 futures slid 1.2% on Monday following the debt downgrade, which Moody’s said was in response to a ballooning budget deficit that showed little sign of narrowing. The move has reignited worries about whether US assets are still popular at a time of lingering global trade uncertainty.
Moody’s is the last of the major US rating agencies to issue such a downgrade. Fitch Ratings and S&P Global Ratings stripped US debt of its top rating in 2023 and 2011, respectively.
The benchmark US stock index has trailed international peers this year and only recovered its 2025 declines last week following the temporary trade deal between Washington and Beijing.
In an encouraging sign, Wilson said the corporate earnings season seemed to have ended with no major impact from the uncertainty over tariffs. A recent pickup in profit upgrades also bodes well for further equity gains, even if the coming months show slightly weaker trade data, he said.
“While we’re respectful of this potential outcome, we think the probability that the market looks through such weakness and deems it temporary just went up because of the trade agreement with China,” Wilson said.
Wilson warned in March that US equity volatility would persist until the second half of the year. The strategist is now among the few voices favoring US stocks over international peers.
Meanwhile, Goldman Sachs Group Inc. strategist David Kostin said he expects the Magnificent Seven group of technology stocks to resume outperforming the broader S&P 500 on robust earnings trends. The cohort has slumped so far this year as investors dumped pricey US stocks.
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SMCI glad i sold it Friday, i will buy back when things settled down. this thing price target is easy 56$
SMCI what’s the plan today?SMCI Moody's U.S. Credit Downgrade: What It Means and How to RespondHey everyone,
Just a quick heads-up: Moody’s has downgraded the U.S. government’s credit rating on Friday, and understandably, it’s got some traders on edge. There’s a bit of fear floating around that this could trigger a market pullback—but let’s not panic. This isn’t new territory. Moody’s is actually the last of the big rating agencies to make this move—S&P and Fitch already beat them to it. So this isn’t a sudden shock; it’s more of an echo.
So, what’s going on?
The U.S. is carrying a massive $36 trillion in debt, and just servicing that debt costs over $1 trillion a year. Moody’s downgrade is essentially a warning flag: lending to the U.S. is becoming riskier. That’s where the 10-year Treasury yield comes in—it’s already up around 4.5%, a level we haven’t seen since the 2008 crisis. Higher yields make government borrowing more expensive, which puts pressure on economic growth and debt sustainability. To reduce yields, the government could try cutting interest rates—but the Fed isn’t eager to pivot just yet. Alternatively, they could signal less borrowing in the future, but this downgrade undercuts that narrative.
Haven’t we seen this before?
Absolutely. Remember August 1, 2023? Fitch downgraded the U.S. then, and here’s how the market reacted:
• The S&P 500 fell around 10%.
• Tech stocks mirrored that drop.
• The “Magnificent Seven” (Apple, Microsoft, etc.) dipped around 12%.
• And high-risk, growth-heavy names—think Cathie Wood’s ARK funds—got crushed by nearly 30%.
But here’s the key: the market bounced back in about three months. So while this could shake things up in the short term, it’s not necessarily a sign of long-term doom.
Why do risky stocks get hit hardest?
Two main reasons:
• Many high-growth firms aren’t profitable and depend on borrowing. Higher rates make their business models harder to sustain.
• Their valuations are based on being more appealing than “safe” assets. If bonds start yielding 5% instead of 4%, some investors will rotate out of growth stocks.
How to stay smart in all this:
Volatility can create opportunity if you keep your head:
• Use stop-loss orders. They help protect gains or limit downside. With the market riding high recently, now’s a good time to have safeguards in place.
• Stick to quality. Focus on fundamentally strong companies with staying power. Despite all the noise, the U.S. isn’t going bankrupt—it has levers like taxation and monetary policy to stay afloat. This downgrade is a signal, not a catastrophe.
Bottom line:
Yes, Moody’s downgrade is a red flag—but not a death sentence. If history is any guide, we could see a pullback, especially in high-risk sectors, but also some great opportunities to pick up solid names at a discount. Manage your risk, stay level-headed, and remember: markets shake, but they tend to recover.
Just sharing my personal take here—not financial advice.
SMCI Stock Futures, Treasuries Drop After US Downgrade:US equity-index futures dropped and Treasuries yield curve steepened after Moody’s Ratings stripped the US government of its top credit rating, citing a ballooning budget deficit it said showed little sign of narrowing.
Contracts for the S&P 500 dropped 1.1% and those for the Nasdaq 100 declined 1.3% as the ratings were cut one level to Aa1 from Aaa Friday. Longer-dated Treasury yields rose to touch the psychological 5% level. A gauge of the dollar weakened 0.2%. Asian stock indexes fell even as China’s industrial output expanded faster than expected in April. Bullion rose 0.4% with appetite for the haven asset boosted by mounting concerns about the US economic outlook and budget deficit.
The downgrade risks reinforcing Wall Street’s growing worries over the US sovereign bond market and revives the ‘Sell America’ concerns triggered by President Donald Trump’s trade war. The rating cut comes as Capitol Hill debates even more unfunded tax cuts and the economy looks set to slow as Trump upends long-established partnerships and re-negotiates trade deals.
The downgrade will add to “growing concerns about the loss of US exceptionalism and make non-US assets more appealing to global stock investors who have been rotating out of US equities into other markets like European equities,” said Vasu Menon, managing director of investment strategy at Oversea-Chinese Banking Corp. in Singapore.
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SMCI ‘Sell America’ Is Back as Moody’s Pushes 30-Year Yield to 5%Investors faced yet another bumpy start to the trading week with US assets coming under fresh pressure, although it’s mounting concern over American debt rather than tariffs generating the volatility this time.
Longer-dated Treasury yields rose to touch the psychological 5% level and US equity futures slid with the dollar in Asia trading after Moody’s Ratings announced Friday evening it was stripping the American government of its top credit rating, dropping the country to Aa1 from Aaa. The company, which trailed rivals, blamed successive presidents and congressional lawmakers for a ballooning budget deficit it said showed little sign of narrowing.
The downgrade risks reinforcing Wall Street’s growing worries over the US sovereign bond market as Capitol Hill debates even more unfunded tax cuts and the economy looks set to slow as President Donald Trump upends long-established commercial partnerships and re-negotiate trade deals.
On Monday, 10-year Treasury yields climbed four basis points to 4.52% and their 30-year equivalents rose about six basis points to 5.00%. A move through 5% for the longer-dated benchmark would put levels last seen in 2023 in play — they peaked that year at 5.18%, the highest since 2007.
“A Treasury downgrade is unsurprising amid unrelenting unfunded fiscal largesse that’s only set to accelerate,” said Max Gokhman, deputy chief investment officer at Franklin Templeton Investment Solutions. “Debt servicing costs will continue creeping higher as large investors, both sovereign and institutional, start gradually swapping Treasuries for other safe haven assets. This, unfortunately, can create a dangerous bear steepener spiral for US yields, further downward pressure on the greenback, and reduce the attractiveness of US equities.”
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SMCI Short Seller Data May 16, 2025Total Shares Traded: 99.29m
Shorted: 17.06m (17.18%)
SMCI 50 tomorrow easySMCI Wall Street Strategists React to Moody's US Credit RatingCut
Eric Beiley, executive managing director of vealth management at Steward Partners:
"This is a warning sign. The US stock
market is about to hit a ceiling after a much welcomed rally. A credit-rating downgrade by Moody's may end up spurring some profit taking by money managers after a massive run for equities the past month."
Ivan Feinseth, chief investment officer at
Tigress Financial Partners:
"US Treasury bonds are viewed as the safest investments in the world. When America's credit rating gets downgraded, the reverberations may potentially be more negative for other countries' sovereign debt because the US is the benchmark. It remains to be seen how this will affect equity markets in the coming weeks, but there may be caution following the strong stock gains recently."
Dave Mazza, chief executive officer of Roundhill Investments:
"While Moody's finally made it official, markets have likely seen a diminished US credit profile coming for some time.
Unlike the shock of S&P's August 2011 downgrade, this downgrade lands in a market already wary of fiscal dysfunction and tariff risk - meaning the impact on stocks may be more muted than initial headlines suggest."
Kim Forrest, chief investment officer at
Bokeh Capital Partners LLC:
"This is not the first time the US has been downgraded. I think this is an alarm bell. While I understand futures are probably wonky, we'll see what happens. Because none of this is news to informed investors. Especially the most important section that we're talking about when we're talking about debt, which is the bond investor. They're well aware."
Keith Lerner, co-chief investment officer at
Truist Advisory Services:
"I don't think this is a game changer but does provide an excuse for investors to take a little bit of profits. It does, however, highlight the potential rise in deficits and will put more focus on that with the current discussions around the extension of the tax bill."
Max Gokhman, deputy chief investment officer at Franklin Templeton Investment Solutions:
"A Treasury downgrade is unsurprising amid unrelenting unfunded fiscal largesse that's only set to accelerate with plans currently in Congress. Moreover, debt servicing costs will continue creeping higher as large investors, both sovereign and institutional, start gradually swapping Treasuries for other safe haven assets. This, unfortunately, can create a dangerous bear steepener spiral for US yields, further downward pressure on the greenback, and reduce the attractiveness of US equities."
Michael O'Rourke, chief market strategist at JonesTrading:
"I expect the equity market will experience a round of profit taking after the strong rebound that occurred. Back in 2011 when S&P downgraded the USA, Treasuries initially sold off but then a haven bid emerged and they rallied."
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