US EditionStocks Slump After US Credit Rating Downgrade
- On Monday, May 19, 2025, Moody’s lowered the United States’ top credit rating from Aaa to Aa1, leading to varied performance in U.S. Equity markets and a sharp rise in Treasury yields.
- Moody's cited persistent and increasing government budget deficits, including the potential $4 trillion impact of extending 2017 tax cuts, as the reason for the downgrade.
- Following the downgrade, the 30-year Treasury yield rose to 5.03%, the highest since November 2023, while the Dow Jones rose 0.05% and the Nasdaq dropped 0.37%.
- Moody's analysts noted current fiscal proposals likely won't reduce deficits materially, warning that rising borrowing costs could worsen America's fiscal challenges.
- The downgrade aligns Moody's rating with S&P and Fitch, signaling growing market caution amid ongoing political and fiscal uncertainties in the U.S.
22 Articles
22 Articles
PSEi dips below 6,400 after US downgrade
MANILA, Philippines – The local bourse tumbled below the 6,400 level on Tuesday after investors had more time to absorb the impact of the United States’ lower credit rating. The benchmark Philippine Stock Exchange Index (PSEi) was only in the green when it opened, higher by 0.05 percent at 6,458.27. However, the PSEi spent the
Times-Georgian
Wall Street dips but European stocks rise
Wall Street stocks fell Tuesday, taking a breather from a recent market rally and digesting a US credit rating downgrade, while European and Asian shares rose as China cut interest rates to historic lows.
US Debt Rates Itself
Does US government debt even have a credit rating? I mean, it does. It has three, or probably more, but three big ones. Since 2011, the US government has had an AA+ rating at Standard & Poor’s; since August 2023, it has had an AA+ rating at Fitch. Until last week, it had an Aaa rating at Moody’s Ratings, but on Friday that too was cut to Aa1. AAA (or Aaa) is the best rating; AA+ (or Aa1) is the second-best rating.
Stocks slump after US credit rating downgrade
The stock market opened with losses Monday as trading began for the first time since the U.S. government suffered a significant hit to its creditworthiness. The Dow Jones Industrial Average, Nasdaq composite and S&P 500 all fell after the opening bell Monday, following a weekend of fading stock futures and spiking bond yields driven by U.S. debt concerns. The Dow was down 217 points after the opening bell, a decline of 0.6 percent. The S&P and N…
The Dow drops 300 points as Moody's downgrades U.S. debt and Trump attacks Walmart
U.S. stocks sank early Monday, with the S&P 500 dropping 1% at the open, the Nasdaq sliding 1.3%, and the Dow Jones Industrial Average down 297 points, or about 0.6%. The VIX spiked 13% and gold pushed higher, too.Read more...
Coverage Details
Bias Distribution
- 50% of the sources lean Right
To view factuality data please Upgrade to Premium
Ownership
To view ownership data please Upgrade to Vantage
