Markets

US stocks plunge on downgrade

NEW YORK : The Dow Jones Industrial Average fell 1.55 percent in opening trade Monday, less than had been feared after

Published August 8, 2011 Updated August 8, 2011 02:50pm

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By Imad Uddin

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The Dow was off 177.56, or 1.55 percent, to 11,267.05 in the first 15 minutes of trade.

The broader S&P 500 dropped 1.76 percent to 1,178.27, while the tech-heavy Nasdaq Composite plummeted 1.89 percent to 2,484.50.

Standard & Poor's lowered the US long-term sovereign debt rating from AAA to AA+ after markets closed Friday, citing Washington's inability to rein in its mounting deficits.

Traders worried that the downgrade would hit the bond markets as well.

But the yield on the 10-year Treasury fell to 2.47 percent from 2.56 percent late Friday, while that on the 30-year bond edged down to 3.80 percent from 3.82 percent. Bond prices and yields move in opposite directions.

Gold, another safe-haven asset, hit a new intraday high of $1,715.75 on the spot market in New York.

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