Moody’s downgrades United States credit rating, citing growth in government debt

Key Points

Moody’s had been a holdout in keeping U.S. sovereign debt at the highest credit rating possible, and brings the 116-year-old agency into line with its rivals.
The decision to lower the United States credit profile would be expected, at the margin, to lift the yield that investors demand in order to buy U.S. Treasury debt to reflect more risk, and could dampen sentiment toward owning U.S. assets, including stocks.

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By WxFollower - May 18, 2025, 7:31 a.m.

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Right after this was announced after Friday’s 4PM close, growth stocks fell 1%+ in after hours trading fwiw.

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By metmike - May 18, 2025, 10:22 a.m.

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Thanks, Larry.

i noticed that and gold spiking up.

ADDED: Gold was already having a modest bounce from the early low but still closed lower again.

Did Moodys intentionally release the info after the market closed? Probably.

Some markets continue to be driven by news at times. It will be interesting the see how theses markets respond Early this week.

We have a power and cable outage(unrelated to weather) so I can’t post the charts showing this right now.

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By metmike - May 18, 2025, 3:08 p.m.

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Here ya go, Larry!

By metmike - May 18, 2025, 3:07 p.m.

Moody's downgrade for US announced just before the 4pm close caused a small spike lower in the last hour:

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