“Fitch Ratings Upgrades US Credit Watch to Negative, Dow Jones Futures Fall”

The Dow Jones futures fell after Fitch Ratings upgraded the U.S. Credit Watch to “negative,” and said it could downgrade the U.S. credit rating, currently at AAA, due to negotiations. Adjusting to increase the debt ceiling has not made any progress. This could result in the US facing a historic default on its debt.

The Dow Jones futures immediately fell more than 100 points after Fitch announced the US credit rating. Before reducing the negative range later, at 7:38 am, the Dow Jones Futures were at 32,791 points, down 63 points or -0.19%.

Fitch said in a statement: “The negative credit review reflects the political rift that has prevented the US from reaching an agreement to raise the debt ceiling or suspend it. Although it is now approaching the June 1, or “X-date”, default deadline.

“We believe that risks in various areas will intensify. If the US fails to raise the debt ceiling before the X-date and as a result the US government will not be able to meet its legal obligations.” Fitch said in a statement.

However, Fitch still expects Ultimately, the White House and Congress will be able to come to an agreement before the debt default deadline.

By InfoQuest News Agency (25 May 2023)

Tags: Dow Jones, stock market, US stock market