FX.co ★ US Stocks Hold Downturn

US stocks experienced a general decline on Wednesday, continuing the downward trend from the previous day amidst ongoing concerns about excessive fiscal spending. The S&P 500 decreased by 0.4%, while the Dow experienced a more significant drop of 400 points, or roughly 1%. Long-term Treasury yields fell, and the dollar weakened against G10 currencies as discussions over President Trump's new economic bill led to further spending cuts. This decision follows Moody's recent downgrade of the US credit rating, citing the unsustainable expansion of the US budget deficit. Market sentiment was further dampened by frustrations over stalled trade negotiations, with the duration for President Trump's reciprocal tariffs more than halfway through its suspension period. Retail giants Target and Lowe's saw their shares fall by 4.5% and 1.5%, respectively, as they warned of reduced profits due to tariff impacts. Additionally, UnitedHealth's stock dropped by 7% following reports of payments made to nursing homes aimed at reducing hospital transfers. In contrast, Alphabet's stock soared by 5% due to new AI investments, helping to keep the Nasdaq 100 just above the baseline.