[1/3]Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. REUTERS/Brendan McDermid/File Photo
Aug 2 (Reuters) – Global shares fell while Treasury yields and the dollar advanced on Wednesday as investors digested an unexpected downgrade of the United States’ top-tier sovereign credit rating and private payrolls data that pointed to US labor market resilience.
Fitch, after the Wall Street close on Tuesday, cut the U.S. by one notch to AA+ from AAA, citing fiscal deterioration. Investors showed little sign of panic.
“Look, no-one is seriously considering the prospect that the U.S. would ever fail to make a payment on its debt,” said Eric Winograd, chief economist at AllianceBernstein in New York. “There will continue to be demand for both long-term and short-term Treasuries, and I don’t see this downgrade as a significant signal of any trouble ahead.”
The Dow Jones Industrial Average…