Fitch Downgrade Bears Little Resemblance to 2011 | LPL Market Signals
In the latest LPL Market Signals podcast, the LPL Research strategists discuss why the August 1 decision by rating agency Fitch to downgrade the U.S. credit rating is much different than the last time that happened in 2011. They also recap a week in which stocks were dragged down by rising interest rates, assess what a stock market pullback might look like, and preview a big week for retail.
Chapters:
00:00 - Intro
00:22 - Agenda
01:24 - Equity Sectors – week to date as of August 11, 2023
04:08 - Fixed Income & Commodities Markets – as of August 11, 2023
05:09 - S&P 500 Has Good Amount of Technical Support
06:34 - 10-year Treasury Yield Near October 2022 Highs
09:08 - What a Pullback Could Look Like
11:49 - Inflation Continues to Come Down Though Rents Remain Sticky
15:08 - Earnings Dashboard
18:36 - Fitch U.S. Debt Downgrade--This Time is Different
19:25 - Stock Market Reaction to Fitch Downgrade is Quite Different From S&P Downgrade in 2011
21:53 - Bond Market Reaction to U.S. Debt Downgrade Also Very Different Than 2011
24:00 - Low Interest Rates and Growing Economy Have Kept Debt Costs Manageable to Date
25:46 - CBO Budget Deficit Projections Highlight the Significant Challenge Ahead
28:56 - Week Ahead: Retailers in Focus
32:19 - Closing
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