Larry Summers Calls Out Fitch Downgrade As 'Bizarre And Inept' — But Did US Call For It With Its Bloated Fiscal Deficit?
Portfolio Pulse from Shanthi Rexaline
Rating agency Fitch has downgraded the U.S.'s long-term rating from 'AAA' to 'AA+', citing the country's deteriorating fiscal deficit and governance issues. The move has been criticized by former Treasury Secretary Larry Summers and economist Mohamed El-Erian. The downgrade is expected to have a psychological impact on the stock market, with major stock futures trading lower. The SPDR S&P 500 ETF Trust (NYSE:SPY) and the Invesco QQQ Trust (NASDAQ:QQQ) both saw declines in after-hours trading.
August 04, 2023 | 10:40 am
News sentiment analysis
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NEGATIVE IMPACT
The Invesco QQQ Trust (NASDAQ:QQQ) experienced a decline in after-hours trading following Fitch's downgrade of the U.S.'s long-term rating.
The downgrade of the U.S.'s long-term rating by Fitch is likely to have a negative impact on investor sentiment, leading to a decline in the price of assets such as QQQ.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 75
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (NYSE:SPY) saw a decline in after-hours trading following Fitch's downgrade of the U.S.'s long-term rating.
The downgrade of the U.S.'s long-term rating by Fitch is likely to have a negative impact on investor sentiment, leading to a decline in the price of assets such as SPY.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 75