⚠ Beware Of High Market Volatility ⚠
🚨 Moody’s has downgraded the U.S. credit rating for the first time in history, citing escalating concerns over the growing national debt and persistent fiscal deficits.
The U.S. rating has been lowered from AAA to AA1 with a negative outlook, meaning the country no longer holds a top-tier rating from any major credit agency.
Moody’s warns that U.S. debt could rise to about 134% of GDP by 2035, up sharply from 98% in 2024, reflecting ongoing government spending, rising interest costs, and political gridlock.
This downgrade signals a heightened risk of default and could lead to higher borrowing costs for the U.S. government and consumers.
Moody’s highlighted that repeated administrations and Congress have failed to reach consensus on strategies to curb the ballooning deficit and escalating interest payments.
The move follows similar downgrades by Fitch and S&P in previous years, ending a perfect credit rating streak for the U.S. that had lasted since 1917.
👉Be cautious with long positions starting Sunday evening - Monday’s market open is likely to be intense and could turn sharply bearish as global investors react to the downgrade and its implications for U.S. financial stability. 📉