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

SOURCE www.marketwatch.com
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.

Key Points

  • Moody's Ratings stripped the U.S. government of its triple-A credit rating.
  • Stock futures fell, U.S. Treasurys saw pressure, and the U.S. dollar weakened in response.
  • Gold futures rallied but the overall market reaction was relatively contained.

Pros

  • Investors can react and adjust their portfolios accordingly to the new credit rating status of the U.S. government.

Cons

  • Stock-index futures fell, indicating potential negative impact on the stock market.
  • U.S. Treasurys saw pressure, pushing up yields, which could affect bond investors.
  • The U.S. dollar weakened, which may have implications on international trade and currency markets.