Tesla share price crashes on Monday as Moody's rating impact seen on US Stock Market

Tesla share price on Monday crashed as highly valued technology stocks at the Wall Street took a hit after rising rates tend to discount the present value of future profits. Tesla led losses among megacap and growth stocks with a 4.1 per cent fall.

US Stock Market‘s main indexes slipped, with technology stocks falling as Treasury yields spiked after Moody’s downgraded the U.S. sovereign rating, sharpening focus on its mounting debt.

Moody’s cut the United States’ sovereign credit rating to “Aa1” from “Aaa” late on Friday owing to concerns about its ballooning $36-trillion debt, becoming the last of the three major credit rating agencies to downgrade the country. It had first given the U.S. its pristine “Aaa” rating in 1919.
Worries about the ever-increasing U.S. deficit were front and center as U.S. President Donald Trump’s sweeping tax-cut bill – which Republican infighting over spending cuts had stalled for days – won approval from a key congressional committee on Sunday.

Dow Jones Industrial Average fell 222.40 points, or 0.52 per cent, to 42,432.34, the S&P 500 lost 55.42 points, or 0.93 per cent, to 5,902.96, and the Nasdaq Composite lost 257.49 points, or 1.34 per cent, to 18,953.61.

FAQs

Q1. What are key indexes of US Stock Market?
A1. S&P 500, Dow Jones Industrial Average, Nasdaq.Q2. How are US Stock Market indexes performing?
A2. Dow Jones Industrial Average fell 222.40 points, or 0.52 per cent, to 42,432.34, the S&P 500 lost 55.42 points, or 0.93 per cent, to 5,902.96, and the Nasdaq Composite lost 257.49 points, or 1.34 per cent, to 18,953.61.