Morgan Stanley, downgrade and market strategist
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Moody, Credit Downgrade
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The S&P 500’s notable recovery has got Wall Street concerned. Morgan Stanley sees warning flags in three big assets.
The US is no longer a triple-A sovereign credit, but top banks think investors are focused on other market narratives, with volatility to be short-lived.
A Friday evening markdown by the Big Four credit rating agency is compounding risks from tariff threats and long-simmering fiscal issues.
Moody’s downgrade of U.S. Treasuries to Aa1 aligns with earlier moves by S&P and Fitch and had a relatively muted market impact, with 10-Year yields finishing little changed. Click to read.
"Munis are no longer moving on headlines; they're reacting to rates and supply," which is playing out again Monday after a choppy March and April, said James Pruskowski, chief investment officer at 16Rock Asset Management.