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'Sell America' vibe revived after Moody's cuts US credit rating

The Straits Times

|

May 20, 2025

Investors face yet another bumpy start to the trading week with US assets coming under fresh pressure, although it is mounting concern over American debt rather than tariffs generating the volatility this time.

NEW YORK -

US equity and bond futures retreated with the dollar in early Asia trading after Moody's Ratings announced on May 16 that it was stripping the American government of its top credit rating, dropping the country to Aa1 from Aaa.

The company blamed successive presidents and congressional lawmakers for a ballooning budget deficit it said showed little sign of narrowing.

The downgrade risks reinforcing Wall Street's growing worries over the US sovereign bond market as Capitol Hill debates even more unfunded tax cuts and the economy looks set to slow as President Donald Trump upends long-established commercial partnerships and renegotiates trade deals.

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