US stocks open lower as selloff continues after rating downgrade

By Ovunc Kutlu

ISTANBUL (AA) - US exchanges opened lower Thursday as a stock selloff continues after Fitch Ratings downgraded the world's biggest economy's rating.

The Dow fell 72 points, or 0.2%, to 35,210 at 9.37 am EDT. The S&P 500 was down 16 points, or 0.35%, to 4,496.

The Nasdaq shed 45 points, or 0.33%, to 13,927 after the tech-heavy index plummeted 310 points, or 2.17%, on Wednesday -- its worst single-day performance since February.

Fitch Ratings downgraded the US' long-term foreign currency issuer default rating Tuesday to "AA+" from "AAA" saying the change reflects expected fiscal deterioration during the next three years, a high and growing general government debt burden, as well as debt limit standoffs and last-minute resolutions.

US Treasury Secretary Janet Yellen said in response that the decision is "puzzling" and "entirely unwarranted," arguing that it is based on a "flawed assessment."

The VIX volatility index, also known as the fear index, jumped 5.6% to 16.99 on Thursday. The 10-year US Treasury yield, meanwhile, rose 2.7% to 4.184%.

The dollar index rose 0.1% to 102.69, while the euro fell 0.15% to $1.0920 against the greenback.

Precious metals were mixed, with gold rising 0.1% to $1,936 per ounce but silver decreasing 0.1% to $23.69.

Oil prices were up around 0.6%, with global benchmark Brent crude at $83.66 per barrel and US benchmark West Texas Intermediate at $80.03.