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PortuguêsUS stock markets fell after Moody's downgraded the US credit rating, raising concerns over national debt. The Dow, S&P 500, and Nasdaq all declined, despite a strong previous week.
The stock markets in New York declined on Monday due to growing concerns over the US national debt. Credit rating agency Moody's downgraded the US rating by one notch from Aaa to Aa1. In recent years, the US has already lost its top rating with agencies S&P and Fitch. A lower credit rating makes it more expensive for the US government to borrow money.
The Dow Jones index was down 0.7% shortly after the market opened, at 42,371 points. The S&P 500 index lost 1% at 5,899 points, while the tech-heavy Nasdaq dropped 1.3% to 18,953 points. The downgrade follows a strong week on Wall Street.
Thanks to a temporary trade deal between the US and China, the Dow gained over 3% last week, putting the index in positive territory for the year. The Nasdaq performed even better, rising more than 7% due to a strong recovery in major tech companies like Nvidia and Tesla. The S&P 500 gained over 5% on a weekly basis. However, Nvidia and Tesla lost 1.2% and 3.9% on Monday.
