Wall Street witnessed a significant slump as shares closed drastically lower due to a credit ratings downgrade from Fitch. The stock market had been profiting from steady gains in July, marking the fifth consecutive month of profit for the S&P 500 and the tech-focused Nasdaq Composite. The rise was propelled by better-than-expected earnings and promising expectations due to strong labor market and consumer spending statistics.

Despite the downgrade marking the second since 2011, when S&P nullified the country’s triple-A rating, financial analysts believe it won’t produce a long-term negative impact on U.S. financial assets, particularly the dollar, given the superior condition of the world’s largest economy as compared to 12 years ago.

History suggests this trend as the equities markets overlooked the last ratings downgrade in 2011, when the S&P 500 simply dropped by 7% but rebounded with a 20% rise from its lows, according to LPL Financial.

Other big players, such as Tesla, Nvidia, Meta Platforms and Apple, closed the day lower as the benchmark 10-year yield surged to its highest point in nearly nine months. Wall Street, a modern capitalist marketplace, is a real-time hub for cutting-edge market analysis brought to you by expert reporters.