08/02/2023

U.S. Markets May Not See Lasting Impact From Fitch Downgrade

Early moves in financial markets today indicated some aversion to riskier assets

Most major brokerages do not expect a sustained drag on U.S. financial markets following Fitch's move to strip the country of its top credit rating, noting that the economy is stronger now than in 2011 when S&P Global downgraded U.S. sovereign debt.

Early moves in U.S. financial markets on Wednesday indicated some aversion to riskier assets as investors assessed the impact of the surprise downgrade.

Stock index futures fell, with Nasdaq futures down 0.7 percent, while Treasury yields slid by 3 basis points. The dollar climbed 0.2 percent, after slipping broadly in the wake of the downgrade.

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