Stock Markets React to U.S. Economic Policies and Fed Discussions

U.S. stock markets displayed cautious movement on Tuesday, with futures tied to major Wall Street indexes experiencing minor declines. Investors were on alert for insights from Federal Reserve officials regarding President Trump's tariff policies, which could influence the economic landscape in the latter half of 2025.

Uncertainty in the markets followed the recent downgrade of the U.S. sovereign credit rating by Moody's, assigning a new rating of 'Aa1' from the previous 'Aaa'. This action, driven by concerns over the nation's $36 trillion debt and interest, has heightened anticipation for Federal Reserve action, with traders now expecting rate cuts later this year.

High-profile stocks like Home Depot exhibited gains, while others such as Nvidia and Amazon saw minor declines. Market analysts from J.P.Morgan remain optimistic about Nvidia's forthcoming earnings report, and investors are hopeful for positive consumer-sector earnings amidst ongoing concerns over U.S. debt.

(With inputs from agencies.)