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US stocks fall as Dow sheds nearly 350 points after Fitch credit-rating downgrade

Aug 3, 2023, 03:12 IST
Business Insider
: Traders work on the floor of the New York Stock Exchange (NYSE) on June 01, 2023 in New York City. Despite the passing the debt ceiling bill in the U.S. House of Representatives, the Dow was lower in morning trading.Spencer Platt/Getty
  • US stocks dropped Wednesday, with the Dow shedding nearly 350 points.
  • The sell-off follows Fitch's downgrade of the US debt rating late Tuesday.
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US stocks dropped sharply Wednesday as investors reacted to a cut to the US debt rating and fresh job-market data.

Late Tuesday, Fitch downgraded the long-term credit rating for the US from AAA to AA+, citing the debt ceiling standoff earlier this summer, worsening debt and deficits trends, and even the January 6, 2021, Capitol riot.

The downgrade baffled some financial experts, and many Wall Street analysts downplayed it. Strategists at Goldman Sachs shrugged it off, saying it "should have little direct impact on financial markets as it is unlikely there are major holders of Treasury securities who would be forced to sell based on the ratings change."

Early Wednesday, ADP said private-sector payrolls expanded by 324,000 in July, down from the prior month's gain but well ahead of forecasts for 175,000, signaling continued strength in the job market.

Here's where US indexes stood as the market closed at 4:00 p.m. on Wednesday:

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Here's what else is going on:

In commodities, bonds, and crypto:

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