Moody's Says Downside Risks To The US' Fiscal Strength Have Increased And May No Longer Be Fully Offset By The Sovereign's Unique Credit Strengths; Expects That The US' Fiscal Deficits Will Remain Very Large, Significantly Weakening Debt Affordability
Portfolio Pulse from Benzinga Newsdesk
Moody's has indicated that downside risks to the US' fiscal strength have risen, potentially outweighing its unique credit strengths. The agency anticipates persistent large fiscal deficits, leading to a substantial weakening of debt affordability.
November 10, 2023 | 11:33 pm
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Moody's report on increased fiscal risks and large deficits may lead to concerns about the US economy, potentially impacting investor sentiment towards assets like SPY.
Moody's assessment of the US fiscal situation could lead to a negative perception of the US economy's outlook. As SPY tracks the S&P 500, which is sensitive to economic indicators and credit ratings, this news could result in a bearish short-term impact on SPY's price as investors react to potential credit rating implications.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70