Global Investors Dump U.S. Holdings as ‘Sell America’ Trend Roars Back

Wall Street is experiencing renewed apprehension regarding American investments after a pivotal warning concerning the most reliable of safe havens: US debt. Moody’s has lowered the United States' credit rating from its prestigious AAA status, a first since 1917. This decision stemmed from escalating debt levels and recurrent congressional failures to tackle budget deficits. While initially unsettled, US stocks ended the day on a positive note, with the Dow gaining 137 points, a 0.3% increase. In contrast, investors shifted away from US Treasuries, leading the 10-year yield to approach 4.5%, while the dollar slipped 0.6% against several currencies. Analysts caution that this downgrade could reignite pessimism on Wall Street, drawing parallels to “America’s Liz Truss moment” if no corrective measures are taken.