From Yahoo Finance: 2025-05-20 22:14:00

Moody’s Ratings downgraded major U.S. banks like Bank of America, JPMorgan Chase, and Wells Fargo following the U.S. credit rating downgrade. The banks’ long-term deposit ratings were lowered to Aa2, citing reduced government support capacity.

Moody’s also downgraded subsidiaries and branches of Bank of America and Bank of New York Mellon, as well as counterparty risk ratings for units of various banks. This comes after the U.S. credit rating was downgraded to AA1, affecting markets and boosting gold prices.

The U.S. credit rating downgrade by Moody’s led to a surge in retail investors buying stocks, with record purchases of $5.4 billion by the end of the trading day. Retail investors also accounted for 36% of the day’s total trading volume, setting a new record amidst market swings.

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Read more: Moody’s Downgrades Top Banks as Retail Investors Rally with Record Stock Buying