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Forbes Daily: Moody’s U.S. Credit Downgrade Kicks Off Stock Futures Slump

  • Moody's downgraded the U.S. Credit rating from Aaa to Aa1 on Friday, triggering a decline in U.S. Stock futures Monday evening.
  • The downgrade reflected concerns over the growing federal debt, financing challenges, and strained deficits amid ongoing tariff policies.
  • Last week, stocks surged following a U.S.-China tariff stand-down, with the Nasdaq rising over 7%, the S&P 500 over 5%, and the Dow more than 3%.
  • Following Moody's downgrade, futures tied to the Dow fell about 287 points, the S&P 500 futures decreased 0.7%, and Nasdaq futures dropped 0.8%, as Peter Boockvar noted the downgrade is symbolic.
  • The credit rating cut suggests continued pressure on bond prices and heightened market uncertainty, with investors awaiting U.S. Central bank speeches and key economic data this week.
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CNBC broke the news in United States on Sunday, May 18, 2025.
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