US Credit Rating Downgraded – Global Stocks Drop

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And so it begins…just wait until later this month when the fireworks really start.

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Global stocks dropped as Fitch Ratings’ downgrade of the US sovereign credit grade spurred a rapid retreat from riskier assets.

Broad losses in Europe dragged the benchmark regional index down by the most in almost four weeks. S&P 500 and Nasdaq 100 futures slid more than 1%, signaling a sharp drop on Wall Street following five months of gains for US stocks.

Fitch stripped the US of its top-tier rating, criticizing the ballooning fiscal deficit and an “erosion of governance.” The downgrade serves up an extra dose of jeopardy for equity investors already concerned over the risks of recession and whether this year’s run-up in stock markets is sustainable.

https://finance.yahoo.com/news/treasury-futures-dollar-slips-fitch-220515670.html


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h/t DOORBERT


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