Stock futures slide after U.S. debt downgrade highlights deficit risk: Live updates

U.S. Stock Futures Decline Following Moody’s Credit Rating Downgrade

U.S. stock futures declined on Sunday evening in response to Moody’s decision to downgrade

the country’s credit rating. Futures linked to the Dow Jones Industrial Average fell by 292

points, or approximately 0.7%. Similarly, S&P 500 and Nasdaq 100 futures dropped by 0.7%

and 0.8% respectively.

On Friday, Moody’s Investors Service reduced the United States' credit rating from Aaa to Aa1,

aligning its assessment with other major rating agencies. The downgrade reflects growing

concerns over the federal government's increasing budget deficit and the rising costs associated

with refinancing existing national debt in a high-interest rate environment.

This development has the potential to negatively impact bond markets, possibly leading to higher

yields at a time when the U.S. economy is already facing uncertainty due to President Donald

Trump's evolving tariff policy. Peter Boockvar, Chief Investment Officer at Bleakley Financial

Group, remarked that the downgrade is "symbolic" and highlights the enduring fiscal pressure

stemming from persistent deficits and a diminishing appetite for U.S. debt among foreign

investors.

The rating adjustment follows a strong performance on Wall Street last week, driven by

optimism surrounding a temporary tariff reduction agreement between the U.S. and China. This

accord was perceived as a significant step forward in easing global trade tensions following

President Trump’s earlier proposal of broad and steep import duties.

Technology stocks led last week’s rally, with the Nasdaq Composite rising over 7%. The S&P

500 climbed more than 5%, marking five consecutive days of gains. The Dow Jones Industrial Average also advanced by more than 3%, with Friday’s 300-point increase pushing the index

into positive territory for the year.

Looking ahead, investors will focus on commentary from key Federal Reserve officials,

including Raphael Bostic (Atlanta Fed), John Williams (New York Fed), and Lorie Logan

(Dallas Fed), all scheduled to speak on Monday. Additionally, the release of leading economic

indicators in the morning will provide further insight into the state of the U.S. economy.

Trump Criticizes Walmart Over Tariff-Related Price Increases

Over the weekend, President Donald Trump publicly criticized Walmart for attributing rising

consumer prices to recent tariff policies. In a statement shared on Truth Social, the President

urged the retail giant to absorb the cost of tariffs rather than passing them on to customers.

“Walmart should stop trying to blame tariffs as the reason for raising prices throughout the

chain,” Trump wrote. He further insisted that “between Walmart and China they should, as is

said, ‘eat the tariffs,’ and not charge valued customers anything.” The message concluded with a

warning: “I’ll be watching, and so will your customers!”

Walmart responded with a formal statement reaffirming its long-standing commitment to

keeping prices affordable. The company emphasized that it would continue working to maintain

low prices for as long as possible, acknowledging the challenge of doing so within the narrow

profit margins typical of retail operations.

This exchange follows a recent comment by Walmart’s Chief Financial Officer, who had warned

that American consumers might experience price increases as a result of the current tariff

environment. The situation highlights growing tensions between government policy and

corporate pricing strategies amid a shifting global trade landscape.

— Alex Harring, Melissa Repko, and Leslie Josephs

U.S. Stocks Rally on Eased Trade Tensions

Equity markets closed last week with strong gains, driven by investor optimism surrounding the

recent U.S.-China agreement to temporarily reduce tariffs. The move was seen as a positive step

toward easing global trade tensions and supporting economic stability.

The Nasdaq Composite led the advance, climbing over 7%, reflecting renewed strength in the

technology sector. Meanwhile, the S&P 500 gained more than 5% over the five-day period,

marking a consistent winning streak. The Dow Jones Industrial Average also posted a notable

rise of over 3%, moving into positive territory for the year 2025.

The market’s upward momentum highlights investor confidence in diplomatic progress and its

potential economic benefits.

— Alex Harring