Stock futures tumbled on Monday as a downgrade of the U.S.′ credit rating by Moody’s caused Treasury yields to spike. Futures tied to the Dow Jones Industrial Average dropped 264 points, or 0.6%. S&P 500 futures pulled back 1.1%, while Nasdaq-100 futures lost 1.5%. Moody’s on Friday after the bell bumped the country’s rating down by one notch to Aa1 from Aaa, bringing the agency in line with its peers. The firm cited the financing challenges tied to the federal government’s growing budget deficit and the ramifications of rolling over existing U.S. debts in a period of high borrowing costs. The debt downgrade pressured bond prices, sending yields higher, at a time when the economy is already under pressure from President Donald Trump’s unfolding tariff policy. The 30-year U.S. bond yield traded above 5% on Monday and the 10-year yield topped 4.5%, levels that pressured equity markets last month and helped cause Trump to back off his stiffest tariffs. Loans for houses, cars and credit cards track these rates. “The fundamental factor of less foreign demand for them and the growing size of the pile of debt that needs to be constantly refinanced is not going to change,” said Peter Boockvar, chief investment officer at Bleakley Financial Group, of the U.S. rating change. Moody’s downgrade “is symbolic in the sense that here’s a major rating agency that’s calling out that the U.S. has strained debts and deficits.” Leading the premarket losses Monday were key tech stocks that would be hurt the most if rising yields slowed the economy and hurt investors’ risk appetites. Palantir was off by 4% on Monday. Tesla shed nearly 4%. Nvidia was off by almost 3%. The downgrade comes after a winning week on Wall Street as investors cheered the White House’s deal with China to temporarily slash levies. The agreement was seen as a breakthrough for global trade after Trump’s initial plan for broad and steep import taxes was unveiled last month. The technology-heavy Nasdaq Composite led the way last week, surging more than 7%. The broad S&P 500 jumped over 5% and posted a five-day winning streak. The blue-chip Dow rallied more than 3% last week. Friday’s gain of over 300 points pushed the 30-stock average into positive territory for 2025. Traders now see more trade deals as key to keeping the stock market comeback going, if yields don’t scare away investors first. U.S. Treasury yields spiked on Monday after Moody’s downgraded the U.S.′ credit rating, causing investors to dump bonds. Rates hit key levels that have pressured financial markets recently. The 30-year Treasury yield was up 13 basis points to 5.03%. The 10-year yield climbed 11 basis points to reach 4.552%. Meanwhile, the 2-year Treasury yield was up 4 basis points, reaching 4.021%. Asia-Pacific markets fell Monday as investors assess the latest slate of economic data from China and Moody’s downgrade of the U.S. credit rating. China’s retail sales growth slowed in April, signaling that consumption remains a worry for the world’s second-largest economy. Hong Kong’s Hang Seng index declined 0.05% to close at 23,332.72 while mainland China’s CSI 300 dropped 0.48%. Japan’s benchmark Nikkei 225 slipped 0.68% to close at 37,498.63 while the Topix lost 0.08% to end the trading day at 2,738.39. South Korea’s Kospi declined 0.89% to close at 2,603.42 and the small-cap Kosdaq traded 1.56% lower to close at 713.75. Australia’s benchmark S&P/ASX 200 was down 0.58% to close at 8,295.1. Oil prices were little changed on Monday with investors eyeing the outcome of Iran-U.S. nuclear talks and key economic data due from China to assess the impact on its commodities demand following trade tensions with the United States. Brent crude futures edged down 5 cents to $65.36 a barrel by 0022 GMT while U.S. West Texas Intermediate crude was at $62.52 a barrel, up 3 cents. The front-month June WTI contract expires on Tuesday, and the more active July contract fell 4 cents to $61.93 a barrel. Gold prices rose more than 1% on Monday, helped by a weaker dollar and safe-haven demand after Moody’s downgraded the U.S. government’s credit rating amid lingering trade concerns. Spot gold was at $3,239.18 an ounce, reversing the previous session’s losses. U.S. gold futures gained 1.7% to $3,242.60. “Gold’s safe-haven appeal has been swiftly rekindled by growing concerns over U.S. debt,” said Nikos Tzabouras, Senior Market Analyst at Tradu.com. “Rising risk aversion and a weakening U.S. dollar helped gold recover from its worst week of the year, keeping the door open to potential new all-time highs.”