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Stocks Slide as Downgrade, Fed Policy Weigh on Sentiment

J.P. Morgan Economist Raises U.S. Recession Risk to 40%


U.S. stocks retreated Monday as investors digested the fallout from the U.S. credit downgrade and looked ahead to upcoming Fed commentary.

The S&P 500 and Nasdaq both edged lower, led by declines in financials and tech, while Treasury yields ticked higher amid fiscal policy concerns.

Traders are reassessing rate expectations and risk sentiment in light of lingering inflation pressures and uncertain monetary signals.

The market’s cautious tone reflects growing anxiety over U.S. debt sustainability and geopolitical headwinds.



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