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

• 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.

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:

• S&P 500: 4,513.35, down 1.38%

• Dow Jones Industrial Average: 35,282.49, down 0.98% (348.16 points)

• Nasdaq Composite: 13,973.45, down 2.17%

Here's what else is going on:

• "Shark Tank" star Kevin O'Leary said the debt downgrade means there's less faith in the dollar and Treasurys.
• Oppenheimer said stocks are on track for a 28% gain this year.
• The housing market might get even more unaffordable with home prices set to spike.
• Here's what Wall Street expects from Apple's earnings report.
• "Magic the Gathering" fan Post Malone bought the "One Ring" card worth millions.
• Top banks made $6 billion trading the ruble last year, according to a report.
• A crypto exec forecasted that bitcoin could reach $100,000 by 2025.

In commodities, bonds, and crypto:

• Oil prices dropped, with West Texas Intermediate down 1.98% to $79.76 a barrel. Brent crude, the international benchmark, moved lower 1.73% to $83.44 a barrel.
• Gold edged lower 0.33% to $1,972.00 per ounce.
• The 10-year yield ticked up 2.4 basis points to 4.071%.
• Bitcoin fell 0.24% to $29,172.56.