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Good morning. Downgrade warning by Fitch for the US, a Fed pause may be in store and Nvidia’s stellar results. Here’s what people are talking about.
The tension around the US debt-limit negotiations ratcheted up after Fitch Ratings warned the nation’s AAA rating was under threat from a political standoff that’s preventing a deal. Fitch may downgrade its assessment to reflect the increased partisanship that is hindering a resolution despite the fast-approaching so-called X date, it said in a statement, referring to the point at which Washington runs out of cash. It moved the US to “rating watch negative” under its classification. Meanwhile, House Speaker Kevin McCarthy’s optimism that White House and GOP negotiators would reach a deal in time to avert a potentially catastrophic default didn’t mollify analysts.