On Monday, U.S. stock futures experienced a decline following Moody’s Investors Service’s decision to revise its U.S. credit rating outlook from stable to negative.

Futures linked to the Dow Jones Industrial Average dropped by 120 points or 0.36%, while those associated with the S&P 500 and Nasdaq-100 both decreased by 0.5%.

Moody’s highlighted the U.S.’s “very large” fiscal deficits and political gridlock in Washington as key factors contributing to the negative outlook in its announcement on Friday, CNBC reported.

Despite the downgrade in outlook, Moody’s reaffirmed the country’s credit rating at AAA, the highest level.

This move follows Fitch’s decision three months ago to lower the U.S. long-term foreign currency issuer default rating from AAA to AA+, citing anticipated fiscal deterioration, a growing debt burden, and political disputes on fiscal and debt matters.

Written by B.C. Begley