Global stock markets dropped after ratings agency Fitch downgraded the US’ long-term credit rating from AAA to AA+. However, top economists, including Larry Summers and Mohamed El-Erian, criticised the decision, with Treasury Secretary Janet Yellen calling it “outdated.” Goldman Sachs Chief Political Economist, Alec Phillips, stated that the downgrade is not expected to have a lasting impact on Market sentiment. Wells Fargo Securities Head of Equity Strategy, Chris Harvey, also suggested that any pullback in stocks would be short-lived. Veteran investor, Mark Mobius, said the move may cause investors to diversify away from the US and into equities.

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