Wall Street in the United States (US) experienced another decline after recording two consecutive days of increases.
All three major indexes fell driven by an increase in treasury yields and US government debt.
The Dow Jones Index slid 0.27%, the S&P 500 fell 0.39%, while the technology-focused Nasdaq fell 0.38%.
The fall was supported 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 expected to expand due to US President Donald Trump's tax cut plan.
The Trump administration also criticized the cuts made by the firms involved and emphasized various efforts to be implemented to be able to reduce government debt and spending.
Trump moved to persuade lawmakers after a visit to Capitol Hill to approve a $3 trillion to $5 trillion tax cut on the $36.2 trillion government debt.
Tesla shares rose 0.5% after Chief Executive Elon Musk said he was committed to being CEO within five years.
US-China talks were positive after US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent met with China's top economic officials to discuss trade tariffs.
In addition, 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%.
Investors were happy after Beijing and Washington returned to peace and were worried about the rising US fiscal deficit.
However, the market was on guard as there were several signs that the talks could return to tension.
Specifically, US stock market trading volume recorded $16.14 billion compared to an average of $17.34 billion over the full 20 trading days.
