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Markets Rattle After U.S. Debt Downgrade: Flight to Safety Begins

U.S. stock futures fell sharply following Moody’s downgrade of the nation’s credit rating, reigniting concerns about rising deficits and long-term fiscal discipline.

Investors are increasingly wary of inflationary pressures and interest rate volatility.

In this uncertain climate, gold and other safe-haven assets gained traction as protective plays.

The downgrade could shift portfolio allocations toward more defensive positions.

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