The S&P 500 recently flashed a technical sell signal, Bank of America said, which can suggest a near-term drop in stock prices.

U.S. stocks turned mostly higher despite Moody's trimming the US' credit rating. Treasury yields jump as investors demand more payout to hold US debt.

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.

A dip in the stock market caused by the Moody’s downgrade of the U.S. debt should be bought, according to a once-pessimistic and now seemingly bullish strategist.

US stocks managed to eke out gains on Monday as bond yields eased off bigger gains and Wall Street largely shrugged off Moody's downgrade of the US credit rating. Meanwhile, investors digested developments in President Trump's tariff salvos.

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

Strategists warned the move, announced after the market close on Friday, could spark some near-term selling in stocks and Treasurys.