New York: U.S. stocks are falling at the opening of trading after more evidence pointed to a slowing global economy.
Germany’s economy stalled last quarter, dragging down growth for Europe. In the U.S., reports painted a mixed picture of the economy: The housing market remains weak, but industrial production rose last month at its fastest pace of the year.
Economic worries overshadowed strong profit reports from blue-chip U.S. companies. They may also erase hopes that the market had finally calmed down since Standard & Poor’s downgraded the U.S. credit rating less than two weeks ago.
The Dow Jones industrial average is down 68 points, or 0.6 percent, to 11.415. The S&P 500 index is down 9, or 0.8 percent, to 1,195. The Nasdaq composite is down 24, or 1 percent, to 2,531.
Meanwhile, Fitch Ratings says it will keep its rating on U.S. debt at the highest grade, AAA. It also says its outlook on the U.S. ratings is stable.
Fellow ratings agency Standard & Poor’s, set off a tempest in the stock market last week after it downgraded part of the U.S. debt rating from the highest grade to the second-highest grade.
Fitch cited the United States’ “flexible, diversified and wealthy economy,” as well as its flexibility in monetary and exchange rates that allows it to adjust to marketplace shocks.
The other main ratings agency, Moody’s, still rates the U.S. debt at its highest grade but says its outlook is negative.
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