U.S. stocks were falling to start the week on Monday, after Moody’s Investors Service late Friday raised doubts about the U.S.’s credit outlook, citing political polarization and federal spending.

At 09:36 ET (14:36 GMT), the Dow Jones Industrial Average was down 67 points or 0.2% while the S&P 500 was down 0.4% and the NASDAQ Composite was down 0.5%.

The benchmark equity indices closed substantially higher Friday, boosted by heavyweight tech and growth stocks as Treasury yields calmed, resulting in tech-heavy Nasdaq recording its biggest one-day percentage rise since May 26.

The Nasdaq Composite climbed 2.4% last week, the broad-based rose 1.3% and S&P the 30-stock Dow rose 0.7%.

Moody’s cuts U.S. credit rating outlook
Moody’s (NYSE:MCO) credit rating agency late Friday changed its outlook on the U.S. credit rating to “negative” from “stable,” while affirming its “Aaa” long-term rating.

“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues,” the agency said. “Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.”

Government spending and fractured politics have been a rising concern for investors, contributing to a selloff that took U.S. government bond prices to their lowest levels in 16 years.

CPI release looms large
Also contributing to the rangebound trading is the proximity of Tuesday’s consumer price data for October, which will provide an update on the Fed’s progress in its battle to keep lowering inflation from last year’s multi-decade highs.

Inflation is expected to have risen 0.1% on a monthly basis, up 3.3% on an annual basis. September’s CPI rose 0.4% on a surprise surge in rental costs, an annual gain of 3.7%, but also showed a moderation in underlying inflation pressures.

While this suggests a cooling of inflationary pressure, Fed Chair Jerome Powell last week hinted that the battle against inflation may not be over yet, and a further interest rate hike was possible – a view that was largely backed up by a series of his colleagues throughout the week.

Big-box retailers to reveal earnings
The earnings season is approaching the end, but several big-box retailers are set to unveil their latest quarterly results this week.

Home Depot (NYSE:HD) is due to report ahead of the opening bell on on Tuesday, followed by Target (NYSE:TGT) on Wednesday, while earnings from Walmart (NYSE:WMT) and Macy’s (NYSE:M) are scheduled to be released on Thursday.

Any guidance from retail executives entering the all-important holiday shopping season will likely be in focus.

Oil heads for another losing week
Oil prices edged higher Monday, attempting to rebound after last week’s sharp losses given persistent concerns over slowing global demand, particularly from China, the world’s biggest crude oil importer.

Both benchmarks posted gains on Friday, but still lost about 4% for the week, notching their third weekly losses for the first time since May.