(Bloomberg) — Global stocks dropped as Fitch Ratings’ downgrade of the US sovereign credit grade spurred a rapid retreat from riskier assets.
Most Read from Bloomberg
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.
“One can have the feeling that the market is looking for excuses to take some profits,” said Alexandre Baradez, chief market analyst at IG Markets in Paris. “But rather than the Fitch downgrade, I suspect that what’s currently being priced is the growing risk of an economic…
2023-08-02 03:49:36
Source from finance.yahoo.com
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(Bloomberg) — Global stocks dropped as Fitch Ratings’ downgrade of the US sovereign credit grade spurred a rapid retreat from riskier assets.
Most Read from Bloomberg
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.
“One can have the feeling that the market is looking for excuses to take some profits,” said Alexandre Baradez, chief market analyst at IG Markets in Paris. “But rather than the Fitch downgrade, I suspect that what’s currently being priced is the growing risk of an economic…
2023-08-02 03:49:36
Source from finance.yahoo.com