Nasdaq Plunges, VIX Spikes As US Credit Downgrade Sparks Rush To Cash: What’s Driving Markets Wednesday?

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Wednesday is shaping up to become one of the most negative trading sessions of the year, with a sharp spike in the VIX, the market’s fear gauge, rising by 16% as of midday New York trading, the largest daily increase since March 9 when Silicon Valley Bank collapsed. Wall Street was rattled by Fitch’s downgrade of the U.S. sovereign credit rating by one notch to AA+, aligning with S&P’s assessment. Better-than-expected ADP employment report data for July failed to prevent a widespread sell-off affecting stocks, bonds, and commodities, with the only exception provided by the dollar’s performance…

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