Stocks have suffered their first meaningful pullback since regaining their momentum in a rally that took them off last month's lows and more than erased the losses suffered after the April 2 rollout of President Donald Trump's sweeping tariff measures.

Moody's also cited House Republicans' "One, Big, Beautiful Bill," which is attempting to make temporary tax cuts established in the 2017 Tax Cuts and Jobs Act permanent, along with new tax cuts as well. Moody's estimates an extension would result in an additional $4 trillion to fiscal deficit, excluding interest payments, over the next decade.

U.S. stocks finished near the unchanged mark on Monday with market sentiment weakened by the downgrade of the federal government's perfect sovereign credit rating owing to its huge debt profile.

U.S. stocks open lower after Moody's stripped the U.S. of its top credit rating. Treasury yields jump as investors demand more payout to hold US debt.

This was the stock's second consecutive day of losses.

The S&P 500 recently flashed a technical sell signal, Bank of America said, which can suggest a near-term drop in stock prices.

US Stock market today opened with a cautious rise as Dow, S&P 500, and Nasdaq futures edged up while investors closely track Trumps new tax bill and rising debt worries. The proposed legislation, which could add trillions to the $36 trillion deficit,

U.S. stocks closed higher after an unsurprising US credit rating downgrade. Treasury yields rise. S&P 500 extends winning streak to six days.