Moody’s Rates US Credit “Top Notch” at Aaa
$DIA, $SPY, $QQQ, $VXX
This week Moody’s said that it has maintained the United States’ top-notch “Aaa” credit rating, saying the country’s “exceptional” economic strength would counterbalance lower fiscal strength.
The ratings agency also kept its stable outlook on the United States and said it expects Washington to resolve its recent trade dispute with China.
The massive Trump tax cuts signed into law in December, which Republicans said would pay for themselves, could balloon the US deficit in years ahead, according to the Congressional Budget Office (CBO)
Moody’s said it expects US federal budget deficits to widen over the medium term, but that the country’s strong economy and strong institutions would counterbalance lower fiscal strength.
“The diversity, dynamism, and competitiveness of the US economy, along with the US dollar’s status as the pre-eminent international reserve currency and very large size and depth of the US Treasury market, offset rising fiscal pressures stemming from ageing-related entitlement spending, higher debt service payments, and recent policy actions that will likely reduce future revenues and increase expenditures,” Moody’s said in a statement.
Friday, the major US stock market indexes finished at: DJIA -11.15 at 24311.19, NAS Comp +1.12 at 7119.80, S&P 500 +2.97 at 2669.91
Volume: Trade on the NYSE came in at 729-M/shares exchanged
- Nasdaq Comp +3.1% YTD
- Russell 2000: +1.4% YTD
- S&P 500 -0.1% YTD
- DJIA -1.7% YTD
HeffX-LTN Market Indexes Technical Analysis on the Week
Have a terrific weekend.