Overview

• Moody's downgraded the U.S. sovereign credit rating from Aaa to Aa1, citing growing budget deficits and rising debt servicing costs.
• U.S. stock futures dropped, with Dow, S&P 500, and Nasdaq futures down 0.7%-0.8%, reflecting market concerns over the downgrade.
• Asia-Pacific markets, including Japan and Australia, opened lower as investors assessed the implications of the U.S. credit rating cut.
• Investors are closely monitoring upcoming economic indicators such as Fed meeting minutes, housing data, and consumer sentiment surveys for policy direction.
• Key corporate earnings from Target, Home Depot, and Zoom this week are expected to provide insights into consumer and sector health.