On Wednesday, US stocks experienced a decline as Fitch Ratings downgraded the credit rating of the US government. The rating agency lowered the US debt rating from AAA to AA+ due to concerns about anticipated fiscal deterioration over the next three years and the recurring last-minute debt ceiling negotiations, which could jeopardize the government’s ability to meet its financial obligations.

As a result of this development, major indices faced losses. The S&P 500 dropped by 63.34 points, or 1.38%, closing at 4,513.39. The Dow Jones Industrial Average fell by 348.16 points, or 0.98%, settling at 35,282.52. Meanwhile, the Nasdaq Composite sank by 310.47 points, or 2.17%, reaching 13,973.45.

Some individual stocks also experienced significant drops. Generac Holdings, for instance, saw a decline of 24.4% in its shares after reporting weaker profit figures. SolarEdge Technologies also faced a substantial decrease of 18.4% following its announcement of lower-than-expected profit and revenue growth.

On the other hand, CVS Health’s shares rose by 3.3% as it reported milder results. Humana experienced a surge of 5.6% as it exceeded profit forecasts.

Furthermore, the yield on the 10-year US Treasury increased slightly, rising to 4.07% from 4.04% as of late Tuesday.

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