Standard & Poor's has cut its credit outlook for the US from stable to negative for the first time since 1941, causing the dollar and shares to tumble.
The ratings agency cited the US' soaring budget deficit and its inability to come up with a credible plan to tackle the debt as the primary reason for the downgrade. Standard & Poor's credit analyst Nikola Swann says: "More than two years after the beginning of the recent crisis US policymakers have still not agreed on how to reverse recent fiscal deterioration or address longer-term fiscal pressures." S&P's has retained the US' AAA credit rating. In reaction to the downgrade, the Dow Jones was down 1.49% or 172 points, at 12,169 just after the opening bell. Traders started sell...
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