S&P 500 plunges after Fitch downgrade, biggest drop since April.
The S&P 500 Takes a Hit After America’s Credit Rating Downgrade
The S&P 500, one of the most widely followed stock market indices, experienced a significant decline on Wednesday. This drop came after Fitch Ratings, a renowned credit rating agency, downgraded America’s credit rating from AAA to AA+. The downgrade was attributed to a “steady deterioration in standards of governance.”
On that fateful Wednesday, the S&P 500 index plummeted by a staggering 1.4 percent. This marked the largest daily decline since late April, sending shockwaves throughout the financial world.
Not to be outdone, the tech-focused NASDAQ index also took a hit, experiencing a substantial slump of close to 2.2 percent. This decline was the largest daily fall for the NASDAQ since February, further adding to the market’s unease.
Reasons for the Downgrade
Fitch Ratings cited several factors as reasons for the credit rating downgrade. These factors included the aforementioned “steady deterioration in standards of governance.” This downgrade serves as a stark reminder of the importance of maintaining strong governance practices to ensure economic stability.
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