London, Wednesday, 02 August 2023
The 10-year Treasury yield increased to above 4.1% on Wednesday as a result of Fitch downgrading the US credit rating, which caused a decline in US stocks, with the Nasdaq topping the session's losses with a 2% decline. The S&P 500 dropped 1.2% and the Dow Jones fell more than 300 points.
The rating agency downgraded the United States' debt on Tuesday from the highest possible rating of AAA to AA+, citing the threat to the government's capacity to pay its debts from the coming three years' worth of fiscal deterioration and debt ceiling disputes.
The US Treasury raised the size of its debt sales, and indicators of the labour market's continued improvement caused Treasury rates to reach new 2023 highs.
According to recent data, private enterprises in the US created 324K jobs in July, far more than the 189K predictions made.
In spite of strong earnings, AMD's stock dropped 5.9% on a gloomy outlook. Following the disappointment of its quarterly report, SolarEdge Technologies fell 18.3%. Starbucks, on the other hand, had a 1.7% increase despite lower-than-anticipated sales.
(Written by: The Decision Maker - Finance editors)