Dow Jones Climbs After Rating Affirmation

The market edges higher as S&P Global maintains the U.S. AA+ rating and flags tariff revenue as a stabilizing force amid fiscal policy questions.

Dow Jones Climbs After S&P Affirms U.S. Credit Rating

The Dow Jones Industrial Average opened higher on Tuesday after S&P Global affirmed the United States AA+ long-term credit rating, saying tariff revenue is likely to offset some of the fiscal impact from recent tax cuts and higher spending. The rating agency described the outlook as stable, noting that tariff measures could help shield the economy from a deeper deficit than policy could otherwise generate.

S&P also warned that a widening federal deficit and risks to the Federal Reserve’s independence could threaten the credit rating. The Fed is preparing for its mid-September meeting, with markets eyeing a possible 25 basis point rate cut. President Trump has publicly criticized Fed Chair Jerome Powell this year, highlighting ongoing tension between monetary policy and political leadership.

The report frames tariffs as a counterbalance to the fiscal push from tax cuts and spending, but the certainty of that offset is disputed by observers who point to long‑term deficits. If deficits widen, credit conditions could tighten even with rating reaffirmations, especially if policy decisions erode trust in central bank independence. The market’s direction now depends on how clearly Washington can align tariff gains with sustainable budgeting and how the Fed signals its next steps amid political pressure.

Highlights

Markets move on policy clarity as much as numbers, making the coming weeks a test of credibility.