Market Turmoil: Moody's Downgrade Sends Shockwaves Through Wall Street
On Monday, Wall Street's indexes fell as technology stocks declined after Moody's downgraded the U.S. sovereign credit rating, highlighting concerns over the nation's $36-trillion debt. The downgrade shifted market focus back to the U.S. deficit amid Republican tax-cut legislation. Tech and energy stocks were hit hardest, with bond yields rising.
Wall Street's indexes took a dip on Monday, influenced by a significant drop in technology stocks following Moody's downgrade of the U.S. sovereign rating. This development put the United States' mounting $36-trillion debt back in the spotlight.
Moody's move to cut the nation's credit rating from Aaa to Aa1 was the final downgrading act among major credit agencies, reigniting market concerns. Meanwhile, President Trump's tax-cut bill gained committee approval amidst internal GOP disputes on spending.
In trading, the Dow Jones, S&P 500, and Nasdaq slid significantly, with technology and energy sectors suffering the most. Rising Treasury yields and geopolitical uncertainties, coupled with company-specific news like Tesla's losses, further influenced market dynamics.
(With inputs from agencies.)
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