Stocks Fall Late on US Downgrade as Yields Climb: Markets Wrap

Stocks dropped in late hours and bond yields climbed after the US was downgraded by Moody’s Ratings amid concerns about the increase in government debt that threatens America’s status as the world’s safe haven.

The $606 billion SPDR S&P 500 ETF Trust tracking the equity benchmark fell about 1% after the close of regular trading. Treasury futures slid to session lows after the Moody’s statement, with the market notching its third straight week of losses — the longest slide this year.