Tuesday, April 19, 2011

The bad news

Investors, already concerned about Europe’s debt troubles and fiscal policy in China, were jarred by the report. The Dow Jones industrial average dropped 140 points, recovering somewhat from earlier in the day, when Standard & Poor’s revised its long-term outlook on US debt to negative from stable. The New York bond rating group said the American economy’s strengths still outweigh its risks, but, “we now believe that they might not fully offset the credit risks over the next two years.’’