US Stocks Fall After Moody's Downgrades US Credit Rating

NJ Transit Reaches Contract Agreement

• 🚆 New Jersey Transit and its locomotive engineers have finalized a new contract agreement, averting a strike.
• ⚠️ Train service is expected to resume tomorrow, but commuters are advised to work from home for one more day.
• 📊 The agreement, which includes wage negotiations, still requires ratification by union members and approval from the NJ Transit Board of Directors.

Market Reaction to US Credit Downgrade

• 📉 Stocks and Treasuries are falling following Moody's decision to downgrade the US government's credit rating to Double-A one from triple-A.
• ⚠️ Moody's cited the failure of successive administrations to address rising US debt and deficits as the reason for the downgrade.
• 🗣️ Treasury Secretary Scott Best downplayed the downgrade, calling Moody's a 'lagging indicator'.

US Tax Bill Advances Amid Medicaid Cuts

• 🏛️ President Trump's tax and spending cut bill has advanced through the House Budget Committee after a late-night vote.
• 🤝 Several Republicans switched their votes to present after securing an agreement to speed up cuts to Medicaid.
• ⚠️ The bill faces further hurdles in the House, including opposition from Republicans in high-tax states regarding state and local tax deductions.

Ukraine Conflict and Diplomatic Efforts

• 🇺🇦 Ukrainian President Volodymyr Zelensky met with Vice President JD Vance at the Vatican.
• 📞 President Trump is scheduled to hold a phone call with Russia's Vladimir Putin.
• 🚫 Secretary of State Marco Rubio indicated that President Trump is prepared to back new sanctions on Russia if talks do not yield positive results.
• 🇷🇺 Sources suggest Putin feels confident in his forces' ability to advance in Ukraine and is unlikely to offer significant concessions.