Moody’s Lowers U.S. Credit Rating
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Dow Futures fell by more than 300 points early on Monday, meanwhile 30-year U.S. Treasury bond yields rose past 5%.
Strategists warned the move, announced after the market close on Friday, could spark some near-term selling in stocks and Treasurys.
Moody’s Ratings has joined Fitch Ratings and S&P Global Ratings as the last credit agencies to downgrade the U.S. economy, the world’s largest. The agency cited the country’s
Changes to the country’s credit rating impact interest consumers pay on household debt like mortgages, car loans and credit cards
Royal Caribbean Cruises Ltd. regained its investment-grade status on Monday after Moody’s Ratings upgraded the global cruise operator’s credit rating on a strong demand outlook and better credit metrics.
Treasury Secretary Scott Bessent downplayed the U.S. credit downgrade as a "lagging indicator" of economic and fiscal conditions, after Moody's took the U.S. off its top tier.
Moody's had investment grade rating on U.S. debt, ahead of the 2008 global financial crisis, current downgrade "not shocking," says expert.
Longer-dated Treasury yields gained while the dollar broadly eased on Monday amid concerns about the U.S. debt load and a tax-cut bill, following Moody's downgrade of the country's sovereign credit rating.