Stocks Slide After Debt Downgrade Even As Experts Dismiss 'Little' Impact On Markets

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Stocks slumped Wednesday as investors digested a rare downgrade on some of the U.S. federal government’s long-term debt from AAA to AA+, despite an apparent lack of concern about the implications among several economists and strategists.

on some of the U.S. federal government’s long-term debt from AAA to AA+, despite an apparent lack of concern about the implications among several economists and strategists.The Dow Jones Industrial Average dropped 220 points, or 0.6%, by 10:20 a.m. ET, while the S&P 500 and tech-heavy Nasdaq fell 1% and 1.7%, respectively.

Goldman Sachs economist Alec Phillips noted the Fitch change was based on “no new fiscal information” and pointed to the limited fallout from S&P rating agency’s 2011

 

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