U.S. Stock Market Moves | “Sell America” Strategy Revived as Nasdaq Drops Nearly 1%, Tech Giants Slide

On Monday, all three major U.S. stock indices opened lower, with the Nasdaq Composite falling nearly 1%. Most high-profile tech stocks declined, led by Tesla (TSLA.US) dropping nearly 4%, Apple (AAPL.US) sliding close to 3%, and Nvidia (NVDA.US), Amazon (AMZN.US), and Alphabet (GOOGL.US) each down around 1%.

The sell-off followed Moody’s Investors Service’s decision last week to downgrade the U.S. government’s credit rating from the top-tier Aaa to Aa1, while revising its outlook from “negative” to “stable.” Moody’s explicitly warned that worsening fiscal deficits and political polarization are eroding the credit foundation of the world’s largest economy.

Wall Street traders revived the “sell America” strategy amid growing concerns. Scott Thiel, Chief Fixed Income Strategist at BlackRock Investment Institute, commented: “Markets are repricing the sustainability of U.S. long-term debt. Moody’s warning cannot be easily dismissed this time.”