US Stock Rally Stalls Amid Debt Downgrade and Trade Tensions

The US stock market’s rebound from tariff-driven lows hit a wall as Moody’s downgrade of government debt and renewed trade threats from the TRUMP administration rattled investors. The S&P 500 retreated 3% from near-record levels, a pullback analysts had anticipated given overbought conditions.

Market technicians had warned of stretched valuations prior to the decline. "Pullbacks to relieve overbought conditions should be both expected and well-contained," one analyst observed. The gradual nature of the selloff nonetheless raised questions about the market’s capacity for further gains without fresh catalysts.

While the article contains no direct cryptocurrency mentions, digital assets often exhibit inverse correlation to traditional market volatility. Bitcoin and major altcoins could see increased safe-haven flows if equity turbulence persists.