U.S. stocks are falling as debt rating cut sours the mood By Investing.com

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⚠️BREAKING: *S&P 500 ENDS DOWN OVER 1% AS U.S. STOCKS TUMBLE AFTER FITCH DEBT DOWNGRADE $DIA $SPY $QQQ 🇺🇸🇺🇸

Risk sentiment took a hit after Fitch downgraded the U.S. government’s credit rating to AA+ from AAA late Tuesday, citing likely fiscal deterioration over the next three years and repeated fraught debt ceiling negotiations.

Fitch became the second major rating agency after Standard & Poor’s move to strip the United States of its triple-A rating in 2011, but this decision brought a sharp response from the U.S. government, with Treasury Secretary Janet Yellen calling it"arbitrary and based on outdated data." After the initial losses, “markets will likely see it in a similar way especially in a week full of important data releases and with the next Federal Reserve rate hike hanging in the balance,” said analysts at ING, in a note.Strong earnings have largely helped stocks this reporting season, with around 82% of the S&P 500 companies having reported posting positive surprises, according to FactSet data.

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