Wall Street futures tumbled on Wednesday after rating agency Fitch's move to downgrade the U.S. government's credit rating sparked a flight to safety in global financial markets.
the United States to AA+ from AAA, citing fiscal deterioration over the next three years as well as a growing general government debt burden, making it the second major rating agency after Standard & Poor's move in 2011 to strip the country of its triple-A rating.
The yield on U.S. 10-year Treasury notes slipped to 4.02%. Gold and the Japanese yen rose, while the dollar remained steady. "When the debt of the world's largest economy is seen as lower quality, it will naturally trouble investors and make them rethink their portfolios," said Laith Khalaf, head of investment analysis at AJ Bell.
"It might also surprise some people given how the U.S. economy is proving to be more resilient than expected."
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