Asian markets slide as Moody’s cuts final US gold standard rating over ballooning debt

AI Summary

Asian stocks and the US dollar declined after Moody's downgraded US sovereign debt rating from Aaa to Aa1, citing rising debt levels and projected widening federal deficits. This reversed some of the market gains from the recent US-China trade tariff truce. Moody's expects US deficits to reach almost 9% of GDP by 2035 due to increased interest payments, entitlement spending, and low revenue. Treasury Secretary Scott Bessent dismissed the downgrade, attributing the rising debt to the previous administration's spending.