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In yesterday's QT, we noted that the 10-year Treasury bond yield was back just over 4.00% and that this might "weigh on stock valuations, especially of the MegaCap-8." That's what happened today.
Yesterday, after the close, Fitch Ratings downgraded US government debt from AAA to AA+ for all the reasons that have been concerning in the bond market for years. The US federal deficits and the resulting mounting US debt are getting to be larger percentages of nominal GDP. On a 12-month-sum basis, the former just jumped from $1.0 trillion a few months ago to $2.3 trillion through June (chart).
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