Fresh York: Monday saw a slight decline in Wall Street stocks as investors processed Moody’s recent decision to downgrade the US debt rating outlook, citing significant debt and political impasse.
US stocks slip after Moody’s rating: Moody’s downgraded the US debt outlook on Friday from “stable” to “negative,” ahead of critical budget talks in Congress aimed at preventing a government shutdown on November 17.
In a statement, the organisation stated, “Moody’s expects that the US’s fiscal deficits will remain very large, significantly weakening debt affordability.”
It is the only significant agency that keeps its top rating for US government debt.
The Dow Jones Industrial Average fell 0.2 percent to 34,228.81 after ten minutes of trading.
The tech-heavy Nasdaq Composite Index down 0.6 percent to 13,715.54, while the broad-based S&P 500 Index fell 0.4 percent to 4,396.39.
According to a note sent to customers by Briefing.com’s Patrick O’Hare, “there is ongoing tension in Congress between, and within, the parties.”
He continued, “Congress must approve a continuing resolution to keep the government funded past November 17 or risk a shutdown, so that tension could be on display this week.”
Ahead of a meeting between the presidents of the US and China later this week, Bloomberg News reported that China was expected to lift a ban on the sale of some aircraft. As a result, Boeing’s stock increased by about 4.4 percent.
Additionally, Monday.com, a project management company, had a more than 11% increase in share price after exceeding profits forecasts.
