..well Qatar and UAE may not care as Bessent puts it about the Moody's downgrade
..BUT the markets do
..in the first few minutes after US futures opened,
> Dow is down -315pts
> S&P500 is down -0.8%
> US 10yr yield is up +1% to 4.484pc
> Gold is up a tad by $10 [market is not really opened yet across Asia]
Previous two instances...
On Aug 5 2011, when S&P downgraded US debt, the S&P 500 ($SPX) dropped 10.37% in 41 trading days. 12 months later, $SPX was up +36%
On Aug 1 2023, when Fitch downgraded US debt, the S&P 500 ($SPX) dropped 10.31% in 58 trading days. 12 months later, $SPX was up +37%
...of course previous instances need to be considered in the context of conditions prevailing at the time, which is far different from those today.
