On Friday (16 May) after the market closed, Moodys announced that they have downgraded the US Debt Credit Rating from Aaa to Aa1. Will US stocks crash on Monday on this news?
Previous two instances... On Aug 5 2011, when S&P downgraded US debt, the S&P 500 ($SPX) dropped 10.37% in 41 trading days. 12 months later, $SPX was up +36%
On Aug 1 2023, when Fitch downgraded US debt, the S&P 500 ($SPX) dropped 10.31% in 58 trading days. 12 months later, $SPX was up +37%
Go figure.