Stock markets were mostly down and the dollar continued to fall as concerns persisted over U.S. government debt.

U.S. stock index futures slipped and Treasury yields surged on Wednesday amid growing fiscal anxiety as investors focused on discussions around U.S. President Donald Trump's tax-cut bill that has been plagued by Republican infighting.

Morgan Stanley sees a more "synchronous" earnings recovery for the U.S. ahead, aided by Fed rate cuts next year, dollar weakness and broader AI gains.

By Shashwat Chauhan and Kanchana Chakravarty (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 downgrade of US credit has sent bond yields higher and stocks lower on Monday morning. Strategists are calling the weakness a buying opportunity as other key catalysts for stocks emerge.