Money

Moody’s downgrades U.S. credit rating amid rising debt

Moody’s downgrades US credit rating to Aa1, citing rising government debt and interest costs amid ongoing fiscal deficits.

Published

9 months ago

May 18, 2025

Ahron Young

Moody’s downgrades US credit rating to Aa1, citing rising government debt and interest costs amid ongoing fiscal deficits.

In Short:
Moody’s has downgraded the US credit rating from Aaa to Aa1 due to rising government debt and interest costs. This downgrade may lead to higher yields on Treasury debt and highlights the need for significant fiscal reforms to address a substantial budget deficit.

Moody’s has downgraded the United States’ credit rating from Aaa to Aa1, marking a significant setback for the nation.

The downgrade comes amid escalating government debt and rising interest costs associated with the federal budget deficit, which Moody’s states have reached levels higher than other similarly rated countries.

As a result of this adjustment, investors may demand higher yields on U.S. Treasury debt, reflecting increased risk. The yield on the 10-year Treasury note rose to 4.48% in after-hours trading, while major stock indices also faced declines.

Moody’s had previously maintained the highest rating for U.S. sovereign debt but has now aligned its rating with rivals like Standard & Poor’s and Fitch Ratings, which also downgraded the U.S. in recent years.

The U.S. is currently grappling with a substantial budget deficit of $1.05 trillion, significantly higher than the previous year. Analysts predict that without substantial fiscal reforms, federal deficits will continue to widen.

The potential extension of tax cuts from the 2017 Tax Cuts and Jobs Act could exacerbate these issues, pushing federal deficits to nearly 9% of GDP by 2035.

Economists have noted a decrease in foreign demand for U.S. Treasuries, indicating a changing perception among investors regarding U.S. debt. The Moody’s downgrade is seen as a wake-up call for policymakers, as the U.S. faces continual pressure to address fiscal challenges.

Money

U.S. stocks falling amid AI worries and weak earnings

U.S. stocks decline amid AI concerns, defensive sectors rising; traders eye commodities, jobs data, and currency trends for insights.

Published

18 hours ago

February 13, 2026

Harvey Vargas

U.S. stocks decline amid AI concerns, defensive sectors rising; traders eye commodities, jobs data, and currency trends for insights.

U.S. stocks are tumbling as investors grow concerned over AI profitability and disappointing earnings. Defensive sectors are attracting attention ahead of the upcoming CPI report, while market participants are carefully watching how tech-heavy AI stocks are influencing broader indices. Steve Gopalan from SkandaFX notes that these factors are shaping market sentiment.

For traders, commodities like gold and oil are also playing a role in sentiment, providing hedges amid market uncertainty. The January jobs report and unemployment data are adding further context, with potential implications for Federal Reserve policy.

Market expectations for rate cuts are shifting as investors weigh economic indicators against global market dynamics. Traders are also eyeing currency movements, including the Australian Dollar and Japanese yen, for signs of broader economic trends.

Money

Wall Street tumbles as tech stocks face AI disruption fears

Wall Street falters as tech stocks dive amid AI anxieties; 2026 seen as critical for proving AI investment returns.

Published

18 hours ago

February 13, 2026

Harvey Vargas

Wall Street falters as tech stocks dive amid AI anxieties; 2026 seen as critical for proving AI investment returns.

Wall Street took a sharp hit as tech stocks plummeted amid growing investor anxiety over artificial intelligence. Markets reacted strongly to uncertainty about how AI could disrupt major sectors, leaving investors on edge. Kyle Rodda from Capital.com explains why investors are nervous about what’s ahead.

Cisco Systems’ quarterly results added to the market jitters, while defensive sectors gained attention as investors sought safer bets. Analysts describe 2026 as a ‘prove it’ year for AI, with companies needing to demonstrate real returns on their ambitious investments.

The January Consumer Price Index report and rising concerns over AI’s impact on transportation companies further weighed on sentiment. Investors are now closely watching major tech firms for signals on how AI spending will shape future market performance.

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Money

U.S. jobs report, Fed decisions, and Japan’s economic risks explained

January US jobs report sparks uncertainty; analysts debate impact on Federal Reserve policy and market confidence.

Published

2 days ago

February 12, 2026

Harvey Vargas

January US jobs report sparks uncertainty; analysts debate impact on Federal Reserve policy and market confidence.

The January US jobs report shows a mixed picture for the economy, with payroll revisions and steady unemployment leaving analysts questioning the impact on Federal Reserve policy. We break down what the numbers mean for interest rates and market confidence.

US stock markets could face turbulence as investors digest the latest jobs data. David Scutt from StoneX explains how these figures may influence equities and what the outlook is for global markets.

Meanwhile, developments in Japan and a strengthening yen could spark new macroeconomic risks. From carry trades to unexpected shocks, we explore how these factors ripple across the global economy.

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