An economist explains why the recent credit rating downgrades for major U.S. banks might not carry a big impact.

Nasdaq 100 drops as Moody’s US credit downgrade lifts yields; tech stocks like Tesla, Apple, and Palantir lead losses in a cautious stock market.

The US already lost its top credit rating from S&P in 2011 ... Reddit (RDDT) is down more than -4% after Wells Fargo Securities downgraded the stock to equal weight from overweight.

The rise in bond yields comes after Moody’s downgraded the US’s triple A sovereign credit rating on Friday evening, warning about rising levels of government debt and a widening budget deficit. On Sunday evening, a congressional budget committee approved a tax bill from the Trump administration that is expected to further worsen public finances.

Economists consider Moody's downgrade justified, given the U.S.'s reluctance to address its rising debt and deficit.