Futures for stocks fell before the opening bell on Monday after the American credit rated Its classification has been reduced According to Moody’s categories on Friday.
As of 8:30 am EST, the S&P futures launched 600 points, or 1.1 %, while the average of the Dow Jones industrial future decreased 252 points or 0.6 %. Futures in the nasdaq technology decreased by 1.5 %. The US dollar was also weakened, while the cabinet revenue increased.
News a 90 days stopped At high tariff rates between the United States and China, it strengthened investor confidence last week, which led to a gathering in Wall Street. However, MOOODY’s announcement of a late credit reduction on Friday threatened to get some sails out of investors.
When lowering the American credit classification from AAA to AA1, MOODY expectations that the federal deficit will accommodate about 9 % of the American economy by 2035, an increase of 6.4 % in 2024, and it often continues by payment of high benefits to debt, increasing spending on result rights, and generating low -tax revenues. Moody’s was the last three major credit rating agencies to reduce the country’s government debts.
Adam Krizifolley, a stock analyst and head of biological knowledge, said in a research note that Modi’s decision “barely surprised.”
He added: “But that was mentioned that the markets, which have become satisfied and very expensive in the past few weeks, is that there is a serious financial problem that needs to be calculated (in addition to the problem of the current customs tariff).”
In addition to the opposite of tariff concerns, MOODY also highlighted the fears that the Congressing Bill in Congress, which was called the “Grand and Beautiful Bill” by President Trump, may increase the debts of the United States. The bill is likely to increase the legal limit of debt by $ 4 trillion, According to To the center of the two parties.
Fears of debts come with the consumer’s confidence in slipping. The consumer feelings index at the University of Michigan were released last week Show Consumer confidence decreased again in May, when Americans are concerned about the impact of the trade war on inflation.
He contributed to this report.
