US Wall Street stocks fell after recording two consecutive days of declines.
Major indexes fell driven by an increase in Treasury yields after the US debt could potentially jump from $3 trillion to $5 trillion with President Donald Trump's tax cut plan.
The S&P 500 index weakened 0.04%, the Dow Jones slid 1.35%, while the technology-focused Nasdaq fell 0.28%.
The fall was caused by the action of Moody's agency to reduce the US credit rating to 'AA1' from 'AAA', thus ensuring that US Treasury yields will be higher.
The move was made due to concerns about the $36 trillion debt that is predicted to expand due to Trump's tax cut plan approved by Congress.
However, Trump criticized the cuts made by the firms involved and emphasized various efforts to be implemented to reduce debt and government spending.
Investors are worried about the US economy after Moody's downgraded the US credit rating last week.
Nvidia, Amazon and Tesla shares also rose 1.3% after hitting a near three-month high, while Apple slipped 0.36%.
US-China talks are progressing well after US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent met with China's top economic officials to discuss trade tariffs.
The US government agreed to lower tariffs on Chinese imports to 30% from 145%, while the Republic of China reduced duties on US imports from 125% to 10%.
However, markets were cautious after Beijing warned that tighter US chip controls could undermine a trade truce, indicating that talks are set to return to a tense state.
In conclusion, US stock market trading volume recorded $16.09 billion compared to an average of $17.56 billion over the full 20 trading days.
