07:22 AM EDT, 05/20/2025 (MT Newswires) -- US equity benchmarks fell before Tuesday's open as investors await comments from key Federal Reserve officials and continue to digest Moody's recent downgrade of the government's credit ratings.

The S&P 500 declined 0.4%, the Dow Jones Industrial Average decreased 0.2%, and the Nasdaq was off 0.5% in premarket activity. The indexes closed the previous trading session mostly higher, with the S&P 500 recording gains for the sixth consecutive day.

On Friday, Moody's lowered the world's largest economy's long-term issuer and senior unsecured ratings to Aa1 from Aaa, citing a sustained increase in debt and interest payment ratios. The ratings agency revised its outlook on the US to stable from negative.

Wells Fargo Investment Institute said Monday that the downgrade may weigh on global confidence in US Treasuries.

"While demand for Treasuries is likely to remain strong, in our view, reduced foreign appetite -- already evident following President Donald Trump's tariff announcements -- could exacerbate fiscal pressures," according to the WFII report.

Treasury yields were down in premarket action, with the two-year rate sliding 2.1 basis points to 3.96% and the 10-year rate falling 2 basis points to 4.46%. The 30-year rate declined 1.9 basis points to 4.92%.

With no major economic reports scheduled for Tuesday, traders will focus on commentary from key central bank officials for clues on future monetary policy, including Federal Reserve Governor Adriana Kugler, Richmond Fed President Thomas Barkin and Atlanta Fed President Raphael Bostic.

Bostic said Monday that he prefers only one rate cut in 2025 for now, CNBC reported. Bostic reportedly said tariffs have been larger than the Fed anticipated at the start of the year.

Shares of UnitedHealth Group ( UNH ) increased 3.2% pre-bell after closing the previous trading session up 8.2%. Home Depot ( HD ) advanced 2.3% as the home improvement retailer reiterated its full-year outlook on Tuesday.

Palo Alto Networks ( PANW ) and Keysight Technologies ( KEYS ) report their latest financial results after the markets close. TJX (TJX), Lowe's (LOW), Snowflake (SNOW), Target ( TGT ) , Ralph Lauren ( RL ) and BJ's Wholesale Club (BJ) are scheduled to post earnings later in the week.

West Texas Intermediate crude oil slipped 0.2% to $62.55 a barrel before the opening bell. Gold inched 0.1% higher to $3,236 per troy ounce, while bitcoin edged down 0.1% to $105,295.