Wall Street declines on concerns about US debt levels

US stock indices fell on Tuesday amid concerns about the size of US debt and its impact on economic performance. 

Later today, we’ll have remarks by several Fed officials, including Saint Louis Fed President Alberto Musalem, which could provide clues on the future of US interest rates.

Otherwise, US treasury yields rose mildly after a short shock on Monday after Moody’s decision to cut the US credit rating by a notch due to concerns about the US debt levels.

There remains persistent concerns that Trump’s tariffs will push the US economy into a recession, but it remains resilient so far.

In case a recession does occur, the US government‘s ability to stimulate the economy through big spending plans and other fiscal policies would be highly curtailed due to the surging debt ceiling.

On trading, Dow Jones fell 0.3% as of 15:57 GMT, or 105 points to 42,690 points, while S&P 500 shed 0.3%, or 18 points to 5945 points, as NASDAQ dropped 0.4%, or 85 points to 19129 points.