US stock losses accelerated Wednesday morning after rating agency Fitch downgraded the US government’s credit rating, citing fiscal and political instability.
The S&P 500 (^GSPC) dropped 1.2%, while the Dow Jones Industrial Average (^DJI) fell around 0.7%. The tech-heavy Nasdaq Composite (^IXIC) slipped nearly 2%.
The downgrade drew an angry response from the Biden administration, with the Treasury Department calling it “arbitrary” after the White House and Congress averted a debt default more than two months ago.
With the downgrade top of mind, investors also geared up for another full day of earnings. CVS (CVS) and Kraft Heinz (KHC) were among the top names to report before the bell. PayPal (PYPL), Shopify (SHOP), Occidental Petroleum (OXY), Etsy (ETSY), and Robinhood (HOOD) are among those due after the bell.
