Stocks are down today and investors wondering what’s going on with the markets will want to keep reading!
The news keeping stocks down today comes from Fitch Ratings. The American credit rating agency dropped the United States’ default rating from AAA to AA+. This comes as it has concerns over the U.S. being able to pay debts.
Also worth noting is Fitch Ratings citing increasing debt in the country as a reason for the downgrade. The credit rating agency likewise takes issue with the division among the country’s political culture, which makes it more unstable as a debt holder.
Janet Yellen, Secretary of the Treasury, responded to the Fitch Ratings downgrade with the following statement:
“I strongly disagree with Fitch Ratings’ decision. The change by Fitch Ratings announced today is arbitrary and based on outdated data. Fitch’s quantitative ratings model declined markedly between 2018 and 2020 – and yet Fitch is announcing its change now, despite the progress that we see in many of the indicators that Fitch relies on for its decision.”
The major indices are feeling the heat from the downgrade, no matter what Yellen has to say on the matter. Let’s get into that below!
Stock Indices Down Today
- The Dow Jones is down roughly 0.7% as of Wednesday morning.
- The S&P 500 is falling 1.2% this morning.
- The Nasdaq is slipping 1.9% as of this writing.
- The Small Cap 2000 is dropping 1.7% on Wednesday morning.
Investors looking for more of the latest stock market news will want to keep reading!
We’ve got all of the most recent stock market stories that traders need to know about on Wednesday! That includes what’s happening with shares of Archer Aviation (NYSE:ACHR) stock, Nikola (NASDAQ:NKLA) stock and Tupperware Brands (NYSE:TUP) stock today. All of that news is ready to go below!
More Wednesday Stock Market News
- Dear ACHR Stock Fans, Mark Your Calendars for Aug. 10
- NKLA Stock Alert: Nikola Just Announced 200 Truck Orders
- Why Is Tupperware (TUP) Stock Up 550% in a Month?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
