From Investing.com: 2025-05-19 02:40:00

Moody’s downgraded the U.S. sovereign debt rating from AAA to Aa1, citing chronic deficits and rising debt servicing costs. The timing of the announcement before the weekend allowed markets to react, with some initial jitters seen in after-hours trading. The true impact will be seen on May 19 during regular trading hours. This is the third downgrade of the U.S. following S&P in 2011 and Fitch in 2023, with projections showing an unsustainable fiscal trajectory.

The downgrade may not lead to an immediate market crisis, but it highlights a growing lack of confidence in U.S. fiscal discipline. While reactions have been relatively contained so far, the upcoming trading session will reveal how institutional capital responds. Key factors to watch include yields, equities, and volatility, as the U.S. loses its AAA rating and faces potential challenges in the global market.



Read more at Investing.com: Moody’s Downgrade Raises Volatility Risks as Treasury Yields Near Key Thresholds