Moody’s Investors Service downgraded the U.S. sovereign credit rating from Aaa to Aa1, marking the first time all three major credit rating agencies—Moody’s, S&P, and Fitch—have rated U.S. debt below the top tier.

The downgrade follows a change in the outlook on the sovereign in 2023 due to wider fiscal deficit and higher interest payments, and comes as Congress debates tax and spending plans that could deepen the fiscal hole.

Strategists warned the move, announced after the market close on Friday, could spark some near-term selling in stocks and Treasurys.

Dalio fears the U.S. will “print money” to pay off its debts, which creates a different problem for bondholders.

All three major U.S. stock market indexes rose Monday afternoon, following an earlier selloff sparked by long-dated Treasury yields surpassing the 5% mark after the financial ratings agency Moody’s downgraded the U.S. government’s credit rating late last week, citing rising debt and interest payment ratios.

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.