DT Trading Limited

In the latest negative news coming out of the US, ratings agency Standard & Poor’s has downgraded the US’s AAA credit rating for the first time since the country received the top-tier rating in 1949.

Yesterday’s trading saw two records set – the Dow Jones Industrial Index dropped 166 points to 11703.10 as of 9:30AM in New York, the ninth time in a row and the longest drop since 1978, when oil prices went through the roof.

The stock market has collapsed: the S&P 500 Index is currently showing the biggest intraday drop of 2011 at the same time that yields on treasury obligations fell to their lowest level since November of 2010.

The US House of Representatives has finally agreed on a bill to raise the country’s debt ceiling $2.1 trillion and cut federal spending by $2.4 trillion, a mere one day ahead of the threat of a default.

Democratic Senate Majority Leader Harry Reid approved a preliminary agreement with Republican leaders and the Obama administration to raise the US government’s debt ceiling.

US stock markets are down, and the S&P 500 Index has been in a depression for the fourth day in a row.

Trading in America has been sinking slowly and dragging the S&P 500 Index down with it, to the lowest level in almost two months. Bonds and commodities futures collapsed, while the storm clouds of a possible impending US default are gathering.

The US dollar was trading 0.2% above its record high against the Swiss franc before the US House of Representatives voted on a plan to cut government spending in exchange for raising the country’s debt ceiling.

American assets fell today, pulling the S&P 500 Index down from a 2-week high, while treasury bonds and commodities futures fell together after negotiations on the US government’s debt ceiling continued.

Today, Speaker of the House John Boehner announced to legislators that he favors adding a short-term increase to the country’s debt limit over President Barack Obama’s proposed solution to the US’s debt problem.