(Il Sole 24 Ore Radiocor) - Milano, 19 mag - US shares were trading lower at midday after a Moody's ratings cut triggered jitters over US debt levels, sending bond yields higher.

Late on Friday Moody's cut its rating on US debt to Aa1 from Aaa, citing large fiscal deficits and rising interest costs.

Concern is growing that a bill currently in Congress to make president Trump's 2017 tax cuts permanent could exacerbate the problem by adding trillions of dollars to federal debt.

Treasury yields spiked after the downgrade with yields on the 30-year and 10-year bonds both up more than 10 basis points.

Trade policy jitters meanwhile came back on the agenda after comments this weekend from treasury secretary Scott Bessent that countries not negotiating on tariffs 'in good faith' would see duties ramped back up to "Liberation Day" levels.

On the data front, the Conference Board said that the leading economic index (LEI) for the US was down 1.0% month on month in April. Economists were expecting the index to fall 0.7%.

At 1512 GMT, the Dow Jones was down 193.13 points, or 0.45%, at 42,628.49 points.

The S&P 500 was 49.20 points, or 0.83%, lower at 5,936.87 points.

The Nasdaq was losing 91.21 points, or 0.47%, at 19,119.89.

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(RADIOCOR) 19-05-25 17:24:18 (0549) 5 NNNN