Futures were positioned lower this morning for the DJIA, Nasdaq and S&P 500 and after opening bell, indices plummeted. The plunge observed with the major stock market index trends was somewhat expected as a response to the recent downgrade of the U.S. government’s credit rating.
The U.S. has always maintained its triple A credit rating and so the downgrade to AA++ was unprecedented. Most were, and still are, uncertain of the extent of the backlash. This uncertainty is applying most of the pressure on the market today, but the eurozone debt problems continue to push index trends lower as well. Individual companies are taking a beating also as the majority of Dow company components are swimming in a sea of red. Global markets are trending red right now too. Asian markets ended their respective sessions lower and European stocks look to be heading in the same direction. The dollar did make minor headway today versus the euro and the British pound but gold was by far the safe haven of choice. Gold prices pushed above the $1700 per troy ounce mark during this session. As mid-day passed, the major indices were distinctly lower. The Dow Jones Industrial Average was red by over 300 points at 11,127.61. The Nasdaq was lower by almost 93 points at 2,439 and the S&P 500 was lower by over 41 points at 1,158.
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