What Analysts Say About US Credit Downgrade by Fitch
- Stocks slip after downgrade; dollar, Treasuries hold steady
- ‘Short and shallow’ pullback seen in stocks, Wells Fargo says
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The unexpected downgrade of US government debt sent shockwaves across the economic and political landscapes. In financial markets, the move was met with what amounts to a shrug.
US stock futures fell as much as 1% overnight before cutting that decline in half as of 7:30 a.m. in New York — a miniscule move for contracts on the S&P 500, an index that’s rallied for five straight months. Reaction was also muted in the Treasury and foreign-exchange markets, with the 10-year yield sliding and the dollar little changed versus major peers.