Michelle ThompsonVIX volatility index rises to 15.06, a 6.3% gain.
On Monday, US stock markets fell as a result of Moody’s decision to downgrade the US’ economic forecast, generating negative sentiment among investors.
At 9:44 a.m. EDT, the Dow Jones was down 27 points, or 0.08%, to 34,255, and the S&P 500 was down 19 points, or 0.43%, to 4,395.
In contrast, the Nasdaq dropped 100 points, or 0.73%, to 13,700 at that moment. With a 2.05% gain on Friday, the tech-heavy index recorded its greatest daily performance since May.
Moody’s downgraded its long-term issuer and senior unsecured ratings at Aaa on Friday, but left the US outlook unchanged at negative.
The rating agency stated that although it expects the US to continue having very substantial budget deficits that will severely impair debt affordability, the downside risks to the country’s fiscal soundness have worsened.
The fear index, or VIX volatility index, increased 6.3% to 15.06. The yield on the US Treasury 10-year increased 1.5% to 4.696%.
The euro dropped 0.09% to $1.0670 versus the US dollar, while the dollar index rose 0.07% to 105.94.
Silver dropped 1.33% to $21.96 and gold lost 0.26% to $1,933 an ounce, putting precious metals in negative territory.
With the US benchmark West Texas Intermediate at $77.92 and the worldwide benchmark Brent crude at $82.25 per barrel, oil prices rose by about 1%.
