FX.co ★ US Stocks Erase Losses

U.S. stocks initially recorded losses but later rebounded as investors analyzed the implications that increasing deficits, elevated interest rates, and uncertain trade policies might have on corporate earnings this year. The S&P 500, Nasdaq 100, and the Dow Jones Industrial Average all experienced slight gains after starting the day significantly lower. Notably, Moody's downgraded the U.S. sovereign credit rating, joining other major agencies in moving away from the esteemed triple-A rating. This development underscores concerns about rising deficits, aligning with sentiments expressed by the Federal Reserve and segments of the market. Meanwhile, President Trump's proposed tax-cut initiative, featuring substantial unfunded tax reductions amounting to hundreds of billions of dollars, was approved over the weekend. This move aims to extend expansionary fiscal policy, albeit intensifying worries about national debt. In the tech sector, both Tesla and Palantir saw a 3% decrease, whereas Apple fell by 1.5%, highlighting a challenging session for technology stocks. Conversely, UnitedHealth rose by 7.5%, recovering from this year's earlier steep declines.