US investors will focus on the resurgence of the so-called 'Sell-America' trade after the sovereign credit rating downgrade from Moody's Investors Service, echoes of Walmart's (WMT) warning on prices in upcoming earnings, and global trade tariffs developments this week relatively light on macroeconomic data.

* Moody's lowered the US rating one notch to Aa1 after the market closed on Friday. Following in the footsteps of Standard & Poor's and Fitch Ratings, albeit delayed, Moody's cited the growing burden of financing the federal government's budget deficit and the rising cost of rolling over existing debt amid high interest rates as reasons driving the cut. Treasury Secretary Scott Bessent called the ratings downgrade a "lagging indicator."

* President Trump's sweeping tax-cut bill reportedly passed a key congressional hurdle on Sunday after four holdout Republican conservatives allowed it to move forward. Reuters reported that non-partisan analysts said the bill would add $3 trillion to $5 trillion to the US debt over the next decade.

* US Treasury yields jumped early Monday, with the US 10-year soaring 10.5 basis points to 4.54%, and the ICE US Dollar Index slumped 0.8% to 100.24 early Monday.

* Earnings reports due this week include Target (TGT), Home Depot (HD), Lowe's (LOW), and TJX Companies (TJX).

* "Between Walmart and China they should, as is said, "EAT THE TARIFFS," and not charge valued customers ANYTHING," Trump said in a post on Truth after Walmart warned last week it plans to raise prices to tackle the impact of tariffs. "I'll be watching, and so will your customers!!!"

* Separately, Secretary Bessent warned of maximum tariffs for trade partners not negotiating in "good faith." Singapore has opened discussions with the US on preferential or zero tariffs on the city-state's pharmaceutical exports to the US, the Straits Times reported Friday.

* Apart from a flurry of Fed speeches, investors will look out for existing home sales and jobless claims this week.