Investing.com UK - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

What do investors think about the US credit downgrade?

ByFederica Montella
Published 03/08/2023, 12:57
Updated 28/07/2023, 11:55

Fitch downgraded US credit

Last Tuesday, after the bell, Fitch decided to downgrade the US credit ratings from AAA to AA+.

The main reasons why Fitch has announced the downgrade are based on worsening fiscal conditions and governance.

The US stock market reacted with a bad performance yesterday.

The S&P 500 fell 1.38%, marking its biggest daily percentage decline since 25 April.

The Tech-heavy Nasdaq Composite dropped 2.17%, its worst one-day performance since February.

The Dow Jones closed the trading session with a loss of 0.98%.

Investors, however, are not worried about the US credit downgrade and strongly believe in the solid conditions of the US credit.

Yesterday's stock market drop, in fact, has been seen as physiological, after the recent bull run and expected.

Meanwhile, the US Treasury Secretary Janet Yellen, said she disagreed with Fitch's decision, commenting the downgrade as "arbitrary and based on outdated data".

Today's events to watch

The US Labour Department will publish the weekly initial jobless claims data at 13:30 GMT+1.

The Institute of Supply Management will publish the Non-Manufacturing Purchasing Managers' Index (PMI) at 15:00 GMT+1.

Aftermarket, the tech giant Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) are going to report their quarterly earnings results.

Follow me

If you find my analysis useful, and you want to receive updates when I publish them in real-time, click on the FOLLOW button on my profile!

Latest comments

Investor would like think that market value is grow up rate and we earn credits
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.