• 31
  • 4
  • Favorite

Dow Falls More Than 100 Points After Fitch Downgrade Dampens Sentiment

Tiger Newspress2023-08-02

U.S. stocks fell Wednesday after Fitch downgraded the long-term rating for the U.S. and traders scrutinized the latest batch of second-quarter earnings results.

Fitch Ratings cut the long-term foreign currency issuer default rating for the U.S. to AA+ from AAA Tuesday night, citing “expected fiscal deterioration over the next three years.”

A busy earnings week carried on. Advanced Micro Devices rose 2% before the bell on better-than-expected results. Meanwhile, CVS Health lost 2% even after posting strong earnings as it trims costs. SolarEdge Technologies tumbled nearly 15% after missing second-quarter revenue expectations.

Earnings season is more than halfway through with results coming in stronger than expected. Of the S&P 500 companies that have reported, about 82% have posted positive surprises, according to FactSet data. The earnings beats have added to bullish investor sentiment, continuing this year’s recovery.

“A soft landing is quickly becoming consensus and stocks may take a breather post a strong rally,” saud Emmanuel Cau, head of European equity strategy at Barclays. “But absent a negative catalyst to alter the goldilocks narrative, we think the grind higher can continue.”

Elsewhere, the latest ADP jobs report showed that the private sector added 324,000 jobs in July. That far exceeded the jobs gains expected by economist polled by Dow Jones, but marked a decrease from June’s downwardly revised 455,000.

Those moves follow a lackluster first day of trading to start August. On Tuesday, the S&P 500 fell 0.27%, while the Nasdaq Composite declined 0.43%. The Dow Jones Industrial Average added 71.15 points, or 0.2%, and reached its highest level since February 2022 at one point in the session.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment4

  • Miker9110
    ·2023-08-02
    Oh
    Reply
    Report
  • Sunshinekim
    ·2023-08-02
    Sentiments can shake confidence so quickly! 
    Reply
    Report
  • setia100
    ·2023-08-02
    Can AI predicts Fitch's analysis B4 it issues the rating ❓ Possible ❗❗❗Big fishes like Elon Musk have the capability. My guess 🤔
    Reply
    Report
  • booz
    ·2023-08-02
    Great ariticle, would you like to share it?
    Reply
    Report
 
 
 
 

Most Discussed

 
 
 
 
 

7x24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email:uservice@ttm.financial