- The stock market sold off as hot jobs data and a ramp-up in Treasury issuance just a day after a US credit downgrade caused traders to retreat following a $6.5 trillion rally.
- Equities fell broadly, with the S&P 500 having its worst day since April. The tech-heavy Nasdaq 100 fell 2% after a 40% surge this year amid the artificial-intelligence frenzy. NVIDIA and Tesla both dropped at least 2.7%. The VIX, Wall Street's so-called fear gauge, rose the most in nearly five months. Ten-year yields have reached their highest level since November, while the dollar has gained ground against all of its developed-market peers.
- Wall Street traders also had something else to worry about - a steeper yield curve - with rates on longer-term bonds rising faster than rates on shorter- term maturities.
- Fitch Ratings downgraded the United States' top-tier rating, citing the country's ballooning fiscal deficit and erosion of governance. The downgrade adds to investors' concerns about the risks of a recession and whether this year's stock market rally is sustainable.
