Moody's downgraded US government credit rating due to unsustainable debt

From Yahoo Finance: 2025-05-18 23:44:00

U.S. stocks, bonds, and the dollar remained steady after Moody’s lowered U.S. government credit rating due to unsustainable debt levels. S&P 500 edged up 0.1%, Dow Jones rose 0.3%, and Nasdaq increased by less than 0.1%. Political gridlock hindering debt control, but investors likely already factored in risks. Bond yields fluctuated.

Moody’s downgrade highlights U.S. government’s increasing debt to fund expenses with little revenue growth. Critics long criticized lack of debt control. Investors anticipated limited market impact. Stocks and bonds initially dropped but recovered. Moody’s warning influences global investors. 10-year Treasury yield rose, later regressed. 30-year bond yield briefly spiked.

Concerns over U.S. debt, trade war, and tariffs weigh on markets. S&P 500 near all-time high despite uncertainties. Companies like Walmart anticipate price hikes due to tariffs. Big retailers reporting quarterly results. Novavax rises 15% on COVID-19 vaccine approval. S&P 500 closes at 5,963.60, Dow Jones at 42,792.07, Nasdaq at 19,215.46.

Global markets mixed with minor movements in Europe and Asia. Chinese retail sales lower than expected, industrial output growth slows. U.S. dollar weakens against major currencies. Washington faces potential tax cuts and borrowing limit debate. Uncertainties persist despite market resilience.



Read more at Yahoo Finance: Stocks, bonds and the dollar drift after the latest downgrade to the US government’s credit rating