U.S. stocks closed higher after an unsurprising US credit rating downgrade. Treasury yields rise. S&P 500 extends winning streak to six days.

The Moody's announcement follows similar actions from Fitch and S&P in recent years and could result in higher borrowing costs.

(Reuters) -U.S. stock index futures were marginally lower on Tuesday as investors awaited commentary from Federal Reserve officials through the day to gauge the central bank's policy stance after the latest downgrade of the United States' credit rating.

Investors will be watching Home Depot (HD) earnings on Tuesday for signs of consumers pushing off home renovation projects due to tariffs and challenges in the housing market. Wall Street expects the home improvement retailer's revenue grew 7.

In a separate interview on Fox Business Network’s “Mornings with Maria” on Monday, Hassett called U.S. debt “the safest bet on Earth,” but similarly said that the new rating is “backward looking” and is “penalizing us for all the reckless spending of the Biden administration” — all while predicting an economic “liftoff.”

By Sruthi Shankar and Purvi Agarwal (Reuters) -European stocks closed flat on Monday, following a five-week winning streak, as declines from a surprise U.S. credit rating downgrade were offset by upbeat corporate updates.