Mortgage Rates Surge After Moody's Downgrade of U.S. Credit

Mortgage rates jumped above 7% after Moody's downgraded U.S. credit from AAA to Aa1.

Moody’s Ratings Downgrade of US Banks

Moody’s Ratings cut deposit ratings for major banks like Bank of America and JPMorgan Chase due to US downgrade, citing weakened government support. The downgrade of the US government’s rating indicates less ability to support highly-rated obligations.

Impact of Moody's Downgrade on U.S. Credit Rating on Stock Market

Moody's downgraded the U.S. credit rating, causing Treasury yields to spike and impacting the stock market. Key tech stocks, such as Palantir, Tesla, and Apple, were affected. The S&P 500 slipped, Nasdaq shed, and Dow Jones traded slightly higher. Small caps fell sharply. China criticized the U.S. for undermining a trade deal. Despite the downgrade, UBS recommends continuing to invest in equities. Atlanta Fed president prefers only one rate cut this year. Stocks made a comeback, but some analysts are cautious about the rally's sustainability. Loop Capital upgraded Charter Communications. U.S. and British bond yields rose. European shares opened lower. President Trump criticized Walmart over tariffs.

Moody's Strips U.S. of Triple-A Credit Rating

Moody's Ratings stripped the U.S. government of its triple-A credit rating, causing stock futures to fall and the dollar to weaken. However, the overall reaction was relatively contained.

Moody's Downgrade of U.S. Credit Rating and Impact on Treasury Yields

Moody's downgraded the U.S.' credit rating, causing Treasury yields to spike and investors to dump bonds. Rates hit key levels that have pressured financial markets recently.

Treasury Secretary's Comments on Moody's Credit Rating Downgrade and Tariffs

Treasury Secretary Scott Bessent dismisses Moody's credit rating downgrade as a 'lagging indicator' related to Biden administration's spending policies. He denies pressuring Walmart on tariffs and highlights negotiation leverage on tariffs. Sen. Chris Murphy criticizes Bessent's comments on the credit downgrade, warning of potential negative economic impacts.

Moody's Downgrades US Credit Rating

Moody's Ratings downgraded the United States' sovereign credit rating to Aa1 from Aaa, citing the growing burden of financing the federal government's budget deficit and rising debt costs. This could lead to higher yields on U.S. Treasury debt and impact sentiment towards U.S. assets.

Moody's Predicts Continued Decline in U.S. Fiscal Strength

Moody's predicts continued decline in U.S. fiscal strength due to widening budget deficits and less affordable debt. The report highlights rising debt to GDP ratio and interest payments as a percentage of revenue. Other ratings agencies have already downgraded the U.S. sovereign rating, citing similar concerns.