All the major US stock markets closed in the red on Wednesday, with the tech-heavy Nasdaq recording the largest fall, down over 2%, while the S&P fell 1.4%, and the Dow dropped 0.98%.top credit ratings agency to downgrade US debt, a senior director of the company said on Wednesday. That was the aftermath of Fitch, the top credit ratings agency, decision to downgrade the US debt.
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Nasdaq drops more than 2% in worst day since February as Fitch downgrade ignites selloff.
Stocks hit selloff mode Wednesday, and the Nasdaq Composite registered its worst day since February, after Fitch downgraded the long-term rating for the U.S. and risk-off sentiment resurfaced.
The tech-heavy index shed 2.17% to end at 13,973.45, while the S&P 500 pulled back 1.38% to close at 4,513.39. The Dow Jones Industrial Average tumbled 348.16 points, or 0.98%, to finish at 35,282.52.
Fitch Ratings cut the long-term foreign currency issuer default rating for the U.S. to AA+ from AAA Tuesday night, citing “expected fiscal deterioration over the next three years.”
The last time the U.S. got a downgrade from a major ratings agency was in 2011 when Standard & Poor’s cut the rating to AA+ from AAA.
