Moody's Downgrades U.S. Outlook, Markets React and Economy Faces Uncertainty

U.S. stock futures dipped slightly after Moody's downgraded its U.S. credit rating outlook to negative, citing fiscal deficits and partisan gridlock. While the U.S. credit rating remains AAA, the downgrade could impact the attractiveness of U.S. debt for foreign investors. Additionally, Bank of America's technology team noted that the tech sector is still recovering from the effects of low interest rates, and Morgan Stanley predicts slowing GDP growth and steady interest rates until mid-2024.