Wall Street stocks in the United States (US) suffered a decline after recording a similar decline yesterday.
All three major indexes declined driven by rising treasury yields after concerns that the US government debt could jump $3 trillion to $5 trillion with Donald Trump's massive tax cut plan.
The S&P 500 index slid 1.61%, the Dow Jones fell 1.91%, while the technology-focused Nasdaq fell 1.41%.
The index's fall was initially driven 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 Trump's tax cut plan that has been approved by Congress.
Investors are worried about the US economy after Moody's downgraded the US credit rating last week.
UnitedHealth shares also fell 6% as the company paid secret bonuses to nursing homes to reduce hospital readmissions, raising concerns about patients.
US-China talks were positive after Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer met with China's top economic officials to discuss trade tariffs.
In addition, the US government agreed to lower tariffs on Chinese imports from 145% to 30%, while the Republic of China reduced duties on US imports to 10% from 125%.
However, markets were cautious as there were several signs that the talks were about to get tense again.
In conclusion, US stock market trading volume recorded $19.39 billion compared to an average of $17.5 billion over the full 20 trading days.
