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Futures down: Dow 0.61%, S&P 500 1.05%, Nasdaq 1.42%

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Netflix ( NFLX ) down on JPM analyst focus list removal

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Blackstone infrastructure unit to acquire TXNM Energy ( TXNM )

(Updates with analyst comment, prices)

By Shashwat Chauhan and Kanchana Chakravarty

May 19 (Reuters) -

Wall Street futures fell and Treasury yields rose on Monday

after Moody's downgraded the U.S. sovereign rating, sharpening

focus on the country's mounting debt.

Moody's cut the United States' sovereign credit rating to

"Aa1" from "Aaa" late on Friday owing to concerns about its

growing $36-trillion debt, becoming the last of the three major

credit agencies to downgrade the country's rating.

It had first given the U.S. its pristine "Aaa" rating in

1919.

"Overall, we view this latest credit action as a

headline risk rather than a fundamental shift for markets," Mark

Haefele, chief investment officer at UBS Global Wealth

Management said in a note.

"While the downgrade may lean against some of the recent

'good news' momentum, we do not expect it to have a major direct

impact on financial markets."

Worries about the ever-increasing U.S. deficit were front

and center as U.S. President Donald Trump's sweeping tax-cut

bill - which had been stalled for days by Republican infighting

over spending cuts - won approval from a key congressional

committee on Sunday.

At 07:22 a.m. ET, Dow E-minis were down 261 points,

or 0.61%, S&P 500 E-minis were down 62.5 points, or

1.05%, and Nasdaq 100 E-minis were down 304.5 points, or

1.42%.

Meanwhile, yields on U.S. government bonds - which move

inversely to prices - ticked higher, with the 10-year note

rising 10.9 basis points to 4.54% and the 30-year

note touching 5.02%.

Highly valued technology stocks took a hit in premarket

trading as rising rates tend to discount the present value of

future profits.

Tesla led losses among megacap and growth stocks

with a 3.4% fall.

Chip stocks also sold off, with Advanced Micro Devices ( AMD )

and Nvidia ( NVDA ) dropping more than 2% each, and

Intel ( INTC ) losing about 1%.

The S&P 500 had registered its fifth straight day of

gains on Friday, closing out the week with firm gains as markets

took heart from a temporary truce on the trade front between the

U.S. and China, along with tame inflation data.

U.S. Treasury Secretary Scott Bessent said in television

interviews over the weekend that Trump would impose tariffs at

the rates he had threatened last month on trading partners that

do not negotiate deals in "good faith".

The quarterly earnings season is winding up as more than 90%

of S&P 500 companies have reported results.

Dow component Home Depot ( HD ) and retailer Target ( TGT )

are among those slated to report earnings later this

week.

The Federal Reserve is also in focus. At least five

officials including New York Fed President John Williams are

scheduled to make public remarks through the day.

In other moves, Netflix ( NFLX ) fell 1.6% after J.P.Morgan

removed the stock from its U.S. Analyst focus list.

TXNM Energy ( TXNM ) jumped 9.5% after the utility said

it would be

acquired

by the infrastructure unit of Blackstone in an

$11.5-billion deal.