Moody's Ratings downgraded the U.S. credit rating by one notch, from a pristine Aaa to Aa1, citing persistent and rising government debt as causing the move.

The S&P 500 was 0.9 percent lower in early trading after Moody’s Ratings became the last of the three major credit-rating agencies to say the US federal government no longer deserves a top-tier “Aaa” rating.

Moody’s downgrades the U.S. credit rating for the first time since 1919, citing rising debt. Crypto markets react with Bitcoin and Ethereum slipping as investors weigh broader economic risks.

Treasury Secretary Scott Bessent downplayed the U.S. credit downgrade as a "lagging indicator" of economic and fiscal conditions, after Moody's took the U.S. off its top tier.