For most sovereigns, the two debt burden metrics and the two debt affordability metrics are equally weighted. But because the US is a reserve currency issuer, Moody’s tweaks the weights on its scorecard so that the Debt Burden sub-factors each attract a 5 per cent weight, and each Debt Affordability sub-factor attracts a 45 per cent weight.

U.S. stock futures point to a lower open, a day after stocks made a comeback to close higher despite Moody's stripping the U.S. of its top AAA rating.

White House National Economic Council Director Kevin Hassett criticized Moody’s Ratings over its decision to lower the US credit rating, calling the move backward-looking and saying the Trump administration is committed to lowering federal spending.

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.

Gold prices drifted higher on Monday, steered by a softer dollar and safe-haven demand after Moody's downgraded the U.S. government's credit rating. Spot gold rose 1% to $3,234.70 an ounce by 1050 ET (1450 GMT).

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.

Long-dated Treasuries fell on Monday as investor attention turned to the US ballooning debt after Moody’s Ratings stripped the nation of its last top credit rating.

The move came as Republicans seek to approve a large package of tax cuts, spending hikes and safety-net reductions which could add trillions of dollars in U.S. debt.