Dow futures drop 250 points as Moody’s U.S. debt downgrade weighs on stocks

• The future contracts of shares indicated a decrease On Sunday evening, while investors were wearing new warnings about the debts of the United States and the possibility of President Donald Trump’s commercial war to heat again. Late Friday, Moody reduced the American credit rating. This came at a time when congress tries to extend Trump’s tax cuts and add new discounts, which are expected to deepen the federal deficit.

American stocks indicated a decline on Sunday night, as investors have made new warnings on the debts of the United States and the possibility of President Donald Trump’s commercial war to heat again.

Dow Jones Industrial Malce’s futures decreased 252 points, or 0.59 %. S&P 500 FUTERES decreased by 0.64 %, while future NASDAC decreased by 0.75 %.

The return on the cabinet increased for 10 years less than a basis point 1 to 4.445 % after Moody reduced the American credit rating one late on Friday to AA1 of AAA, the highest degree.

He pointed out, “The increase that exceeds a decade in government debt rates and pay benefits to much higher levels of kings classified as well.”

The dollar fell 0.18 % against the euro and 0.36 % against the yen. Gold rose 0.93 % to $ 3.26.80 an ounce. American oil prices decreased by 0.64 % to $ 62.09 a barrel, and Brent crude fell 0.55 % to $ 65.05.

The stock market has been in a list since Trump began to stop or back down some of the most aggressive definitions. In fact, the S&P 500 decreases only 3 % after its peak after a fierce recovery, and some veterans in the market see more gains.

On Friday, it is reported that the US Union and the European Union had given serious negotiations that were granted the markets after the gathering earlier this month due to Trump’s escalation with China and a commercial deal with Great Britain.

But on Sunday, Treasury Secretary Scott warned that any country that does not negotiate with good faith will witness a tariff that dates back to the levels of “Liberation Day”, which sparked an epic sale last month.

During an interview with CNN’s Union caseHe added that there are 18 “important” commercial partners that the United States focuses on, while there are much smaller partners “we can only reach a number.”

“My other sense is that we will do a lot of regional deals -” this is the rate of Central America, and this is the rate of this part of Africa. “

MOODY can also reduce the amount of additional upward arrows, especially if the borrowing costs are sent up by increasing the cabinet revenue.

But some Wall Street analysts said that it does not tell investors about anything new and follows similar moves from Standard & Poor’s in 2011 and Fitch in 2023.

Meanwhile, Republican -controlled Congress tries to extend the tax cuts from Trump’s first term and add new spaces such as ending taxes to advice, additional work and social security income. While lawmakers are also looking for spending cuts, some even call for tax rise on millionaires to enhance revenues, the total impact of financial proposals in general will add trillion to the budget deficit in the coming years.

This is that the deficit has already reached a trillion dollars so far in this fiscal year and reached 2 trillion dollars in the previous financial years. Debate of debt benefits alone is one of the largest spending elements, exceeding the Pentagon budget.

Moody’s said on Friday: “During the next decade, we expect a greater deficit as spending in spending is high, while government revenues are still widely flat,” Moody’s said on Friday. “In turn, the ongoing financial deficit will push the burden of government debt and benefits up. It is possible that the financial performance of the United States will deteriorate in relation to its past and compare it to other high -class dictates.”

This story was originally shown on Fortune.com

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2025-05-18 22:22:00