Traders were unmoved by Moody's rating downgrade, and the S&P 500 closed just one step away from a bull market.

A new wave of buying on dips drove a rebound in US stocks, but traders remained unaffected.Moody'sThe impact of downgrading the US credit rating.

S&P 500The index rose for the sixth consecutive trading day, closing just one step away from a bull market. Several strategists said that any pullback could present a buying opportunity, driven by the recent pause in the tariff war.

NVIDIABecoming a market focus, the company released its latest technology aimed at maintaining the growth in demand for artificial intelligence computing power and ensuring that its products remain at the core of the industry.

JPMorgan ChaseIt closed down 1% after Moody's Ratings downgraded the deposit ratings of some large banks, including the bank, citing the downgrade of the U.S. sovereign credit rating last Friday and the government's weakened ability to support these banks.

American SteelThe company closed up 3.2% after Nippon Steel reportedly increased its investment commitment in U.S. Steel, contingent on Trump approving the deal.

Moody's downgraded the U.S. credit rating from Aaa to Aa1 on Friday, blaming successive administrations and Congress for the widening budget deficit and saying there are currently no signs of it narrowing. U.S. Treasury Secretary Besant downplayed the concerns, saying the Trump administration is determined to reduce federal spending and boost economic growth.

“Monday’s price action answered the question, ‘What if Moody’s hosts a downgrade party and no one attends?’” said Ian Lyngen and Vail Hartman, strategists at BMO Capital Markets. “Investors are clearly on Besant’s side.”

Thomas Lee, an analyst at Fundstrat Global Advisors, believes that Moody's downgrade is "basically not a big deal," adding that if the stock market shows any signs of weakness, he will "buy heavily on dips."

“Moody’s is citing a fact we already know, which is the huge deficit in the United States, so it’s not ‘surprising,’” Lee said. “And we doubt any of the large fixed income management companies would be surprised. There’s absolutely no incremental information here.”

Morgan StanleyMichael Wilson said that if Friday's credit rating downgrade triggers a sell-off, investors should buy U.S. stocks on dips.

At the close of trading, the S&P 500 rose 0.1% to 5,963.6 points; The Dow Jones Industrial Average rose 0.3% to 42,792.07. The Nasdaq Composite Index remained largely unchanged at 19,215.46 points; The Nasdaq 100 rose 0.1% to 21,447.05 points; The Russell 2000 index fell 0.4% to 2104.434.