Stocks, US Treasury yield, and gold all plunge after Moody’s downgrade
The post Stocks, US Treasury yield, and gold all plunge after Moody’s downgrade appeared on BitcoinEthereumNews.com. Markets went red before the opening bell on Monday after Moody’s cut the United States’ top credit rating, hammering stock futures, lifting Treasury yields, and dragging down gold. The downgrade, announced late Friday, pushed the country’s long-term rating from Aaa to Aa1, citing deepening budget problems and rising debt costs. The fallout was immediate and brutal. According to data from CNBC, futures tied to the Dow Jones slid by 337 points, or 0.79%, while the S&P 500 dipped 0.97%. The tech-heavy Nasdaq 100 dropped 1.19%. The credit warning came as borrowing costs stayed high and the US faced more debt to roll over. Moody’s said the situation made the government’s fiscal outlook riskier than before, especially as Trump’s aggressive trade policies continue to shake investor confidence. Treasuries rise as Trump tax bill adds more pressure The downgrade also rattled the bond market. 30-year US Treasury yields rose sharply to 5.01% — their highest since April 9, the day Trump’s tariff policy set off a global wave of selloffs. When yields rise, prices fall, and Monday was a perfect example of that. Traders dumped bonds, anticipating even more issuance thanks to Trump’s new tax legislation, which is designed to slash taxes without cutting spending. Nicolas Trindade, a fund manager at AXA, warned that Washington shouldn’t get too comfortable. “It’s a stark reminder that the US should not take for granted its ‘exorbitant privilege’ that enabled it to issue debt at a relatively lower cost despite a very high fiscal deficit,” he said. Tensions over the tax bill have been heating up. On Friday, five Republicans from the House Budget Committee voted against it, delaying progress. Trump, who’s been trying to rally support, posted on Friday, “Republicans MUST UNITE behind, ‘THE ONE, BIG BEAUTIFUL BILL!’ We don’t need ‘GRANDSTANDERS’ in the Republican…
The post Stocks, US Treasury yield, and gold all plunge after Moody’s downgrade appeared on BitcoinEthereumNews.com.
Markets went red before the opening bell on Monday after Moody’s cut the United States’ top credit rating, hammering stock futures, lifting Treasury yields, and dragging down gold. The downgrade, announced late Friday, pushed the country’s long-term rating from Aaa to Aa1, citing deepening budget problems and rising debt costs. The fallout was immediate and brutal. According to data from CNBC, futures tied to the Dow Jones slid by 337 points, or 0.79%, while the S&P 500 dipped 0.97%. The tech-heavy Nasdaq 100 dropped 1.19%. The credit warning came as borrowing costs stayed high and the US faced more debt to roll over. Moody’s said the situation made the government’s fiscal outlook riskier than before, especially as Trump’s aggressive trade policies continue to shake investor confidence. Treasuries rise as Trump tax bill adds more pressure The downgrade also rattled the bond market. 30-year US Treasury yields rose sharply to 5.01% — their highest since April 9, the day Trump’s tariff policy set off a global wave of selloffs. When yields rise, prices fall, and Monday was a perfect example of that. Traders dumped bonds, anticipating even more issuance thanks to Trump’s new tax legislation, which is designed to slash taxes without cutting spending. Nicolas Trindade, a fund manager at AXA, warned that Washington shouldn’t get too comfortable. “It’s a stark reminder that the US should not take for granted its ‘exorbitant privilege’ that enabled it to issue debt at a relatively lower cost despite a very high fiscal deficit,” he said. Tensions over the tax bill have been heating up. On Friday, five Republicans from the House Budget Committee voted against it, delaying progress. Trump, who’s been trying to rally support, posted on Friday, “Republicans MUST UNITE behind, ‘THE ONE, BIG BEAUTIFUL BILL!’ We don’t need ‘GRANDSTANDERS’ in the Republican…
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