US STOCKS-Wall St set for lower open after Moody's rating cut; yields rise

• Futures down: Dow 0.53%, S&P 500 1%, Nasdaq 1.42%
• Netflix down on JPM analyst focus list removal
• Blackstone infrastructure unit to acquire TXNM Energy

May 19 (Reuters) - Wall Street's main indexes were on track to open lower on Monday as Treasury yields rose after Moody's downgraded the U.S. sovereign rating, sharpening focus on its mounting debt.

Moody's cut the United States' sovereign credit rating to "Aa1" from "Aaa" late on Friday owing to concerns about its ballooning $36-trillion debt, becoming the last of the three major credit rating agencies to downgrade the country. It had first given the U.S. its pristine "Aaa" rating in 1919.

"Nothing new, but it's putting a lot of things that the market has worried about rightfully back into focus," said Ross Mayfield, investment strategist at Baird.

"The trade headwinds keep markets volatile, but this morning in particular it's about the Moody's downgrade."

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 08:41 a.m. ET, Dow E-minis YMcv1 were down 226 points, or 0.53%, S&P 500 E-minis EScv1 were down 59.75 points, or 1%, and Nasdaq 100 E-minis NQcv1 were down 304.75 points, or 1.42%.

Meanwhile, yields on U.S. government bonds - which move inversely to prices - ticked higher, with the 10-year note US10YT=RR rising 10.9 basis points to 4.548% and the 30-year note US30YT=RR 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 TSLA.O led losses among megacap and growth stocks with a 3.8% fall.

Chip stocks also sold off, with Advanced Micro Devices AMD.O and Nvidia NVDA.O dropping about 2% each and Intel INTC.O losing 1.5%.

The S&P 500 .SPX had registered its fifth straight day of gains on Friday, closing out the week with firm gains as markets took heart from a temporary tariff truce 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 .DJI component Home Depot HD.N and retailer Target TGT.N are among those slated to report earnings later this week.

Atlanta Fed president Raphael Bostic said the central bank might only be able to cut interest rates by a quarter point through the rest of the year, given the concern about rising inflation stoked by higher import taxes.

In other moves, Netflix NFLX.O fell 1.7% after J.P.Morgan removed the stock from its U.S. Analyst focus list.

TXNM Energy TXNM.N jumped 9.1% after the utility said it would be acquired by the infrastructure unit of Blackstone BX.N in an $11.5-billion deal.

Reddit RDDT.N dropped 7.1% after Wells Fargo downgraded the social media company to "equal weight" from "overweight".