Market Turmoil Follows Moody’s US Credit Downgrade

Financial markets reeled after Moody’s stripped the US of its last perfect credit rating late Friday. The Aaa to Aa1 downgrade triggered simultaneous selloffs across equities, Treasuries, and traditional SAFE havens as investors recalibrated risk exposure.

Equity futures plunged immediately, with the Dow Jones shedding 337 points (0.79%) in pre-market trading. The S&P 500 and Nasdaq 100 followed suit, dropping 0.97% and 1.19% respectively as tech stocks bore the brunt of the selloff. The rating agency cited deteriorating fiscal conditions and unsustainable debt trajectories as primary concerns.

Fixed income markets mirrored the chaos, with 30-year Treasury yields spiking to 5.01% - levels unseen since early April. The surge reflects growing skepticism about the government’s ability to manage its $34 trillion debt burden amid elevated borrowing costs and impending maturity walls.