On Monday, US stocks experienced a decline in response to Moody’s Investors Service downgrading its outlook for the US credit rating. The US stocks fell as concerns around the US debt grew. The rating agency cut its outlook to “negative” from “stable” on Friday, indicating potential for a downgrade from the current AAA rating. Moody’s cited the lack of effective fiscal policy measures to address government spending or revenue as a significant factor contributing to this outlook. The ratings agency expressed concerns over the US’ fiscal deficits and potential challenges in reaching a consensus on a fiscal plan due to political polarization within US Congress.
Additionally, investors looked ahead to the release of new inflation data on Tuesday. The consumer price index for October was expected to show a year-over-year slowdown in headline inflation.
The US stock indexes were impacted by these developments. Just after the opening bell on Monday, the S&P 500 stood at 4,403.34, down 0.27%, the Dow Jones Industrial Average was at 34,231.26, down 0.15% (51.84 points), and the Nasdaq Composite was at 13,744.07, down 0.39%.
In other news, billionaire investor Ron Baron estimated that Elon Musk’s SpaceX would reach a value of half a trillion dollars by 2030. Additionally, Musk mentioned that Warren Buffett should have invested in Tesla when its worth was a fraction of its current value.
Finally, in commodities, bonds, and crypto, the West Texas Intermediate crude oil edged higher to $77.25 a barrel, while Brent crude rose to $81.48 a barrel. Gold slipped to $1,933.83 per ounce, and the 10-year Treasury yield rose to 4.678%. Bitcoin also experienced a dip to $36,869.
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