US stocks down Monday after Moody's lowered outlook to negative

VIX volatility index jumps 6.3% to 15.06

By Ovunc Kutlu

ISTANBUL (AA) - US stock markets opened the week with declines on Monday, following Moody's decision to downgrade the US' economic outlook, fostering negative sentiment among investors.

The Dow Jones was down 27 points, or 0.08%, to 34,255 at 9.44 a.m. EDT, while the S&P 500 lost 19 points, or 0.43%, to 4,395.

The Nasdaq, meanwhile, decreased 100 points, or 0.73%, to 13,700 at the time. The tech-heavy index soared 2.05% on Friday, posting its best daily performance since May.

Moody's on Friday lowered the US' outlook to negative, from stable, but affirmed its long-term issuer and senior unsecured ratings at Aaa.

The rating agency said the downside risks to the US' fiscal strength have increased, while it expects the US' fiscal deficits to remain very large, significantly weakening debt affordability.

The VIX volatility index, also known as the fear index, jumped 6.3% to 15.06. The 10-year US Treasury yield rose 1.5% to 4.696%.

The dollar index increased 0.07% to 105.94 while the euro fell 0.09% to $1.0670 against the greenback.

Precious metals were in negative territory, with gold losing 0.26% to $1,933 an ounce and silver trimming 1.33% to $21.96.

Oil prices increased almost 1%, with global benchmark Brent crude at $82.25 per barrel and US benchmark West Texas Intermediate at $77.92.

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