From Yahoo Finance: 2025-05-18 10:59:00

Investors are facing a rocky start to the trading week as Moody’s Ratings downgrades the US government credit rating to Aa1 from Aaa, citing a ballooning budget deficit. This move is expected to increase volatility in the markets, with 10-year Treasury yields rising to 4.49% on Friday. Analysts predict further increases in Treasury yields following the downgrade, potentially reaching levels unseen since 2023. The dollar’s decline against the euro reflects uncertainty and loss of confidence in US policies, according to European Central Bank President Christine Lagarde. Despite concerns, foreign demand for US government securities remains strong, indicating no revolt against American debt. Traders await the impact of the Moody’s downgrade when markets reopen in Asia on Monday.



Read more at Yahoo Finance: Investors Await Another Monday Jolt After Moody’s Downgrades US