The Stock Market Falls on U.S. Credit Rating Downgrade: 2 Growth Stocks to Buy Now and Hold Forever
The stock market fell sharply on Wednesday after Fitch Ratings lowered the U.S. government's credit rating, the first downgrade from a major firm in more than a decade. The benchmark S 500 fell 1.4% in its worst showing since April, and the tech-heavy Nasdaq Composite tumbled 2.2% in its worst day since February.
Fitch attributed its decision to "repeated debt-limit political standoffs and last-minute resolutions" that have eroded confidence in fiscal management. But JPMorgan Chase CEO Jamie Dimon called the decision ridiculous, noting that the U.S. is "still the most prosperous nation on the planet." He also said the downgrade mattered very little because the market (not rating agencies) determines borrowing costs.
Unfortunately, Paycom Software (NYSE: PAYC) and SolarEdge Technologies (NASDAQ: SEDG) were caught in the riptide of the downgrade. The companies reported earnings after the market closed on Tuesday, and both provided worse-than-expected guidance for the current quarter. Management's downbeat outlook combined with broader credit rating anxiety caused shares of Paycom and SolarEdge to plummet 19.2% and 18.4%, respectively, on Wednesday.
Source Fool.com
JPMorgan Chase & Co. Aktie
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