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US debt rating cut drags Wall Street into losses

Date: May 26, 2024 Time: 05:34:52

Widespread boxes on Wall Street. This Wednesday’s session was defined by the downgrade of the rating that the credit rating agency Fitch Ratings announced one night for the United States, from the maximum grade ‘AAA’ to a lower step at ‘AA+’. An announcement, which has caused notable falls in the main indices of the New York Stock Exchange.

At the close of operations in The Big Apple, the Dow Jones yields 0.98%, the S&P 500 1.38& and the Nasdaq technology bears the brunt after losing 2.21%.

The rating agency referred to the “expected fiscal deterioration” over the next three years and the “increasingly high” debt of the US government among the reasons why it has made the decision. “Investors may use this Fitch downgrade as a reason to take some profit, but we think it was probably a natural part of the market cycle,” Mona Mahajan, senior investment strategist at Eduardo Jones, said in a statement reported by CNBC.

In addition, Mahajan noted that, in general terms, this data “has not deterred” his fundamental view of the economy or markets. For her part, Brooke May, managing partner of Evans May Wealth, explained this Wednesday on CNBC that although the data is “disappointing”, she does not believe it will have a “significant impact on the economy in the short term”.

“But it’s a warning to Washington,” May said. On the other hand, investors remain attentive to the publication of corporate results, and this week it is the turn of the titans Apple and Amazon. Of the S&P 500 companies that have released their latest results, about 82% have posted better-than-expected results, according to FactSet data.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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