The Dow Jones (DJIA) opened Tuesday’s trading session in positive territory after S&P Global (SPGI) affirmed its AA+ long-term credit rating on the U.S. The rating agency cited positive impacts from the Trump administration’s tariffs that will offset tax breaks and spending increases from The One Big Beautiful Bill.
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“Amid the rise in effective tariff rates, we expect meaningful tariff revenue to generally offset weaker fiscal outcomes that might otherwise be associated with the recent fiscal legislation, which contains both cuts and increases in tax and spending,” said S&P in a statement.
S&P Warns on Deficit and Fed Risks
S&P added that it expects a stable outlook for the U.S. At the same time, it cautioned that factors like a widening federal deficit or risks to the Fed’s independence may undermine the U.S. credit rating.
President Trump has criticized Fed Chair Jerome Powell several times this year for delaying rate cuts, even nicknaming him “Too Late.” The Fed is set to meet on September 16–17 to determine its next rate move, with a 25 bps cut likely.
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