Live Updates: Stock Futures Tumble as U.S. Debt Downgrade Raises Deficit Concerns

Traders were busy on the New York Stock Exchange recently. Sunday night brought some unsettling news for investors as futures slipped a bit in response to Moody’s recent downgrade of the U.S. credit rating.

Futures linked to the Dow Jones fell by 292 points, or 0.7%. S&P 500 futures and Nasdaq 100 futures also dipped by 0.7% and 0.8%, respectively. Moody’s downgraded the country’s rating from Aaa to Aa1, aligning it with other agencies. This decision stemmed from concerns about the rising budget deficit and the difficulties tied to U.S. debt responsibilities amid high borrowing costs.

Peter Boockvar, the chief investment officer at Bleakley Financial Group, emphasized that this downgrade highlights a troubling reality: the U.S. has mounting debts. He remarked that the decrease in foreign demand for U.S. debt and the constant need for refinancing won’t improve anytime soon.

Interestingly, this downgrade comes on the heels of a strong week for the stock market. Investors had been buoyed by news of a U.S.-China trade deal that promised to ease tariffs temporarily—a significant turnaround after President Trump’s initial plans for extensive import taxes.

In the past week, the Nasdaq Composite surged by more than 7%, while the S&P 500 saw a gain of over 5%. The Dow also celebrated, up more than 3% and reaching positive territory for 2025 thanks to a Friday spike of over 300 points.

As this week unfolds, investors will keep a close eye on speeches from key Federal Reserve officials, including Atlanta Fed President Raphael Bostic and New York Fed President John Williams, as they shed light on the state of the economy. Leading indicators data is also set to be released, providing more insight into market trends.

With recent adjustments in the global economy and trade, it’s clear that both investors and policymakers are in for a challenging period ahead. For those following financial news closely, this week promises interesting developments.



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