Coming swiftly on the heels of the August 5 downgrade of the U.S. credit rating – from AAA to the less-than-perfect AA+ – by influential ratings agency Standard and Poor’s (S&P), the firm’s S&P 500 futures index reported a drop of six percent on Monday, August 8. This has brought considerable additional consternation to some already-panicked financial advisers and their clients, according to Reuters.
This recent drop is the most significant to hit the S&P 500 in almost three years, since the major financial crisis of 2008.
Numerous advisers found clients calling in a frenzy, hoping to sell their existing assets in the fear that they would lose value. Conversely, quite a few financial risk-takers took advantage of the fearful atmosphere and bought stocks of major value, including shares in Apple, General Electric, Intel and Procter & Gamble, among others.
Joe Jennings, investment director of PNC Wealth Management in Baltimore, Maryland, downplayed claims of panic.
“While clients are certainly concerned about recent market activity, they are not panicking; some have viewed the current pullback in the market as a potential buying opportunity,” Jennings told the news service.
On the morning of August 9, S&P 500 futures increased by the small margin of 1.1 percent, potentially signaling a rebound from Monday’s uproar, according to the San Francisco Chronicle.