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[quote=Anonymous]Stock futures tumbled on Monday as a downgrade of the U.S.′ credit rating by Moody’s caused Treasury yields to spike.
https://www.cnbc.com/2025/05/18/stock-futures-slide-after-us-debt-downgrade-highlights-deficit-risk-live-updates.html
Futures tied to the Dow Jones Industrial Average
 dropped 264 points, or 0.6%. S&P 500
 futures pulled back 1%, while Nasdaq-100
 futures lost 1.4%.

Moody’s on Friday after the bell bumped the country’s rating down by one notch to Aa1 from Aaa, bringing the agency in line with its peers. The firm cited the financing challenges tied to the federal government’s growing budget deficit and the ramifications of rolling over existing U.S. debts in a period of high borrowing costs.

The debt downgrade pressured bond prices, sending yields higher, at a time when the economy is already under pressure from President Donald Trump’s unfolding tariff policy. The 30-year U.S. bond yield traded above 5% on Monday and the 10-year yield topped 4.5%, levels that pressured equity markets last month and helped cause Trump to back off his stiffest tariffs. Loans for houses, cars and credit cards track these rates.

“The fundamental factor of less foreign demand for them and the growing size of the pile of debt that needs to be constantly refinanced is not going to change,” said Peter Boockvar, chief investment officer at Bleakley Financial Group, of the U.S. rating change. Moody’s downgrade “is symbolic in the sense that here’s a major rating agency that’s calling out that the U.S. has strained debts and deficits.”[/quote]

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