After the surprise downgrade of US bonds, the market experienced risk aversion on the following day, with the US stock market witnessing a broad sell-off. The tech-heavy Nasdaq Composite Index dropped over 2% from the previous day, marking the largest decline in nearly 5 months. While concerns about US fiscal uncertainties are currently limited, the structural fragility of the US economy and finances has been once again highlighted, dampening the market’s optimistic outlook on the economy.
Today, we can expect continued downward pressure on US stocks, leading to a bearish trend. Similarly, the USD/JPY exchange rate is expected to face resistance on the upside amid the prevailing market sentiment.
