US stocks had their biggest one-day drop in months, joining a global sell-off, as a surprise downgrade of the country’s debt rating and stronger than expected jobs data raised concerns over the possibility of an extended period of higher interest rates that weigh on risky assets.
Wall Street’s benchmark S&P 500 fell 1.4 per cent on Wednesday, its biggest daily drop since late April, while the tech-focused Nasdaq Composite gave up 2.2 per cent in its largest daily drop since February.
Late on Tuesday Fitch cut its US credit rating from triple A to double A plus, citing a mounting government debt burden and the debt ceiling stand-off that two months ago brought the world’s largest economy close to a default.
Read the full story on the Financial Times here.