European and Asian stocks closed higher on Tuesday while Wall Street was trading slightly lower, without any major economic data to set a firm direction.

A dip in the stock market caused by the Moody’s downgrade of the U.S. debt should be bought, according to a once-pessimistic and now seemingly bullish strategist.

Investors will get the first chance to react to Moody’s downgrade of the U.S. credit rating late Friday over rising government debt and they’ll also look for more progress from President Trump on trade deals as the week kicks off.

Local shares tumbled yesterday below the 6,400 level amid persisting negative sentiment following Moody’s credit rating downgrade of the US.

For a minute there, it looked like the “Sell America” trade was poised to make a comeback on Monday after Moody’s decided to strip the U.S. of its top-tier credit rating late Friday.

U.S. stock futures point to a lower open, a day after stocks made a comeback to close higher despite Moody's stripping the U.S. of its top AAA rating.

CNBC's 'Mad Money' host and veteran market commentator Jim Cramer has urged investors not to get nervous in the face of concerns like the Moody’s downgrade of U.S. debt . The U.S.'s rising debt stands at $36 trillion as of now.

US stocks managed to eke out gains on Monday as bond yields eased off bigger gains and Wall Street largely shrugged off Moody's downgrade of the US credit rating. Meanwhile, investors digested developments in President Trump's tariff salvos.