What's moving markets today
The US risks losing its AAA credit rating if the government shutdown drags on long enough, an executive with Fitch Ratings warned today.
Sound familiar? This happened in 2011. Back then, a standoff over raising the debt ceiling led Standard & Poor’s to take the unprecedented step of downgrading America’s AAA credit rating.
Flash forward to today. The debt limit will go back into effect in March, but the Treasury Department will be able to buy time by using extraordinary measures for a few months.
Fitch said in a report last Friday that “evidence of greater dysfunction” could pressure the US credit rating, especially given the rising federal deficit and slowing economic growth.
2:30 pm ET Update: Our colleague Alison Kosik received this statement from William Foster, VP and senior credit officer at Moody’s Investor Service:
US futures are pointing higher, suggesting that Wall Street could be headed for another day of gains.
Investors are hopeful that US-China trade talks, which just concluded in Beijing, may bring good news about a deal.
The decision to extend negotiations for a third day had been interpreted as a sign that things are moving in a positive direction.
Wednesday was the first day some investors were able to unload shares from Xiaomi after its market debut in July.
The result wasn't pretty: Shares dropped 7% in Hong Kong to a record low. The Chinese smartphone maker is now trading 40% below its IPO price.
CEO Lei Jun, among other shareholders, responded to the sell-off by promising not to sell any shares for at least another year.
The decision was made to express "confidence in the long term value of the company," they said in a statement.