US stocks, bonds and dollar fall after the latest downgrade of the US government’s credit rating

NEW YORK AP U S stocks U S bonds and the value of the U S dollar are all falling on Monday following the latest reminder that the U S governing body seems to be hurtling toward an unsustainable mountain of debt The S P was lower in early trading after Moody s Ratings became the last of the three major credit-rating agencies to say the U S federal executive no longer deserves a top-tier Aaa rating The Dow Jones Industrial Average was down points or as of a m Eastern time and the Nasdaq composite was lower Moody s pointed to how the U S authorities continues to borrow more and more money to pay for its expenses with political bickering making it intricate to either rein in Washington s spending or raise its revenue in order to get its ballooning debt under more control It s a blow because the downgrade essentially means investors globally should not lend money to Washington at such low interest rates The yield on the -year Treasury jumped to from late Friday That number shows how much in interest investors are demanding of the U S ruling body to lend it money for years Perhaps even more joltingly the yield on a -year Treasury leaped back above up from less than in September Shorter-term Treasurys which move more on expectations for what the Federal Reserve will do with overnight interest rates than on what investors are feeling about the U S regime and commercial sector moved by much less And if Washington has to pay more in interest to borrow cash to pay its bills that could cause interest rates to rise for U S households and businesses too in everything from mortgage rates to auto loan rates to credit cards That in turn could slow the business sector Nothing Moody s revealed is new of syllabus and critics have been railing against Washington s inability to control its debt for a large number of years Investors have likely already accounted for largest part of the well-known issues according to Brian Rehling head of global fixed income strategy and other analysts at Wells Fargo Venture Institute They re expecting limited additional field impact following the initial reactions But the downgrade comes ahead of a key period for Washington where it s set to debate prospective cuts in taxes that could suck away more revenue as well as the nation s limit on how much it can borrow The downgrade also adds to a long list of concerns that have already been weighing on the industry Chief among them is President Donald Trump s agreement war which has already forced investors globally to question whether the U S bond arena and the U S dollar still deserve their reputations as particular of the safest places to park cash during a predicament The U S market so far seems to be holding OK despite the pressures of tariffs but big companies have been warning in the last few days they re uncertain about the future Walmart for example has noted it will likely have to raise prices because of tariffs That caused Trump over the weekend to criticize Walmart and demand it and China eat the tariffs Walmart stock fell Monday Other big retailers are on the schedule to review their latest quarterly results this upcoming week including Target Home Depot Lowe s and TJX Cos In stock markets abroad indexes were mostly lower across Europe and Asia Chinese markets fell after the governing body explained retail sales rose less in April than expected Upsurge in industrial output slowed to year-on-year from in March That could mean rising inventories if production outpaces demand even more than it already does But it also may reflect several of the shipping boom before chosen of U S President Donald Trump s tariffs on Chinese goods took effect After an improvement in March China s business sector looks to have slowed again last month with firms and households turning more cautious due to the commerce war Julian Evans-Pritchard of Capital Economics noted in a document In the foreign currency markets the value of the U S dollar fell against everything from the euro to the Australian dollar AP Writers Jiang Junzhe and Matt Ott contributed Source