US futures slide, yields and gold jump as Moody's downgrades US credit rating
US stock futures have declined while bond yields and gold prices surged in response to Moody's surprise downgrade of the United States' long-term sovereign credit rating from Aaa to Aa1. The ratings agency cited eroding fiscal strength, increased debt burden, and weakening governance as key drivers behind the downgrade. S&P 500 futures are down 0.6%, and the 10-year US Treasury yield has climbed 8 basis points to 3.75%. Spot gold, often seen as a safe-haven asset, has risen 1.2% to $1,950 per ounce. The US dollar index has plunged 0.9% to 102.50, its lowest level in two months. Traders are now reassessing the Federal Reserve's rate hike path, with the downgrade potentially limiting the central bank's ability to raise rates aggressively. The US dollar could face further pressure against major currencies, while gold might extend gains as investors seek refuge from economic uncertainties.
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