Global equities dropped as Fitch Ratings' downgrade of U.S. government debt spurred a rapid retreat from riskier assets and anxiety over this year's spectacular rally in tech stocks.
“One can have the feeling that the market is looking for excuses to take some profits,” said Alexandre Baradez, chief market analyst at IG Markets in Paris. “But rather than the Fitch downgrade, I suspect that what's currently being priced is the growing risk of an economic slowdown. The downward trend started to emerge yesterday on the back of disappointing Chinese and U.S. data, which suggests it's not really about the rating downgrade, but rather the risk of a slowdown.
S&P 500 Swiftly Rebounded After Last Credit Downgrade | The benchmark is up over 280 per cent since then