Credit downgrade sends markets tumbling - Trade Only Today

Credit downgrade sends markets tumbling

Author:
Publish date:

U.S. stocks dropped sharply this morning in response to Friday's announcement by Standard & Poor's that it had lowered the country's credit rating.

“The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics,” S&P said in a statement.

“More broadly, the downgrade reflects our view that the effectiveness, stability and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011,” the rating agency added.

S&P’s long-term sovereign credit rating on the United States was lowered to AA+ from AAA.

When the markets opened this morning, the Dow Jones industrial average dropped about 200 points, the S&P 500 index declined about 22 points and the Nasdaq Composite Index fell more than 63 points.

Related

E-nnovation Lab to expand at 2018 Metstrade show

The growing demand for hybrid and electric engines is becoming more apparent within the leisure marine market, prompting Metstrade to introduce the E-nnovation Lab platform for electric propulsion technology.

Aluminum, tow boats lead moderate growth in May

Boat registrations were up 2.1 percent in May in the main powerboat categories, and rose 3.2 percent in all categories, according to preliminary data from Statistical Surveys Inc., a Michigan company that tracks new boat registrations.

Retaliatory tariffs on boats to EU start today

The 25 percent tariff the EU announced Wednesday on U.S.-built boats kicks in today, and a 10 percent tariff on boats sold to Canada will start July 1, prompting boatbuilders to worry they will lose sales to those countries.