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Fitch's first downgrade since 1994 sends shockwaves through US stock market
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US stocks experienced accelerated losses on Wednesday morning after rating agency Fitch downgraded the US government's credit rating, ci Show More
US stocks experienced accelerated losses on Wednesday morning after rating agency Fitch downgraded the US government's credit rating, citing concerns about fiscal and political instability. This downgrade was the first of its kind since 1994 and had a "meaningfully negative impact" on market sentiment.
Fitch stated that the downgrade in the US sovereign credit rating reflects the expected deterioration in the Biden administration's fiscal situation, indicating a projection of worsening finances over the next three years, with overall government debt burden remaining high and continuing to grow.
According to Fitch's projections, the ratio of the US general government deficit to GDP is expected to increase from 3.7% in 2022 to 6.3% in 2023, further expanding to 6.6% in 2024, and reaching 6.9% in 2025.

Do you believe this downgrade will have a long-term negative impact on the US stock market?
What investment strategies would you consider in response to this situation?
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