September S&P 500 futures (ESU23) are trending down -0.54% this morning as risk sentiment took a hit after rating agency Fitch downgraded the United States’ credit rating while market participants awaited new economic data on the labor market.
Fitch Ratings unexpectedly downgraded the United States’ sovereign rating to AA+ from AAA late Tuesday, citing potential fiscal deterioration over the next three years and concerns about repeated down-to-the-wire debt ceiling negotiations that could threaten the government’s ability to meet its financial obligations. At the same time, U.S. Treasury Secretary Janet Yellen criticized this decision, calling it “arbitrary and based on outdated data.”
