Stocks sink as US credit downgrade roils markets

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US stocks post a sharp sell-off following Fitch's downgrade of US debt as the Nasdaq notches its worst session in five months

Fitch's downgrade is unlikely to hurt Treasuries' status as a safe asset. Here's whyWill Fitch's downgrade mar the reputation of US Treasuries as the ultimate safe asset?"Any credit rating movement would be more of an embarrassment to the US than an impact to investors,” said Patrick Klein, portfolio manager at Franklin Templeton Fixed Income.

“The US government issues something the rest of the world desperately wishes it had,” Josh Lipsky, senior director of the Atlantic Council’s GeoEconomics Center and former adviser at the International Monetary Fund, wrote in May. Other safe assets exist but pale in comparison to Treasuries. Gold, for example, is a haven prized for its price stability even when the rest of the market experiences volatility.

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