FX.co ★ US Stocks Tumble

On Monday, US stocks experienced a downturn, with the S&P 500 decreasing by 1%, the Nasdaq declining by 1.3%, and the Dow Jones Industrial Average dropping approximately 280 points. This retreat in the stock market reflects investor anxiety over the US's fiscal and economic outlook. The sell-off was triggered by Moody's recent decision to downgrade the US credit rating from Aaa to Aa1, attributing this to escalating government debt and an increasing budget deficit. Investor concerns were further intensified after a key congressional committee approved President Trump's proposed tax-cut package over the weekend. This package involves substantial, unfunded tax reductions amounting to hundreds of billions of dollars, thereby elevating worries about long-term fiscal sustainability. These developments followed weaker-than-expected economic data from the previous week, which exacerbated fears regarding the US's growth trajectory. All sectors posted losses, with consumer discretionary, energy, and technology sectors underperforming. Major tech companies, such as Apple (-2.3%), Nvidia (-1.6%), Amazon (-1.6%), Meta (-1.3%), and Alphabet (-0.9%), also saw declines.