HomeFinancial MarketsStock Futures Drop After U.S. Credit Rating Downgrade

Stock Futures Drop After U.S. Credit Rating Downgrade

Stock futures on the New York Stock Exchange slid lower on Wednesday morning after Fitch downgraded its U.S. Credit Rating from AAA to AA+. Fitch is the second of the three major ratings firms to downgrade the U.S. following the debt ceiling battle earlier in the year and an uncertain debt outlook going forward.

Futures on the benchmark S&P 500 index fell by 1% while those on the tech-heavy Nasdaq Composite Index slumped 1.3% lower. Contracts on the Dow Jones Industrial Index fell by 270 points, or 0.8%, thereby slipping from its 71-point gain on Tuesday.

“Whilst not a game-changer, news that Fitch downgraded the U.S. credit rating by a notch was enough to put risk appetite on the back foot as evidenced by the red numbers across the board,” Tim Waterer, an analyst at broker KCM Trade reflected.

Adding to investors’ risk aversion is the upcoming U.S. jobs report which they’ll look to for guidance before making any significant investment decisions.

Kroger and Albertsons to Sell More Stores in Attempts to Get Merger Approval

Kroger and Albertsons have announced plans to sell more stores in an attempt to get the green light for their $25 billion merger. Kroger reached...

Stocks Continue Slide as Israel-Iran Tension Ensues

Stocks on the New York Stock Exchange continued their drop-off on Friday as investor anxiety rose following Israel's retaliatory strike against Iran. Market composure...

United Airlines Stock Jumps 14% After Strong Q1 Results and Optimistic Projections for Q2

Following a strong first-quarter earnings report, United Airlines saw its stock jump 14% on Wednesday. Investors were also intrigued by the company’s optimistic projections...