a look at the day ahead in us and global markets from amanda cooper two out of three aint so good on tuesday fitch became the second major agency after standard  poors in 2011 to strip the united states of its prized triplea credit rating fitch cut by a notch to aa and cited fiscal deterioration over the next year and repeated downtothewire negotiations on capitol hill over the countrys debt ceiling two months ago lawmakers were haggling over the government borrowing limit and the two sides seemed so far apart that the process threatened to tip the worlds largest economy into a technical default the event itself has not come as a shock given fitch warned back in june after the crisis was resolved that it would finalise that view later in the year but the timing has caught a few in the market by surprise investors have responded by knocking equities and scooping up government bonds which has pushed the yield on the 10year us treasury note down towards 40 while the dollar is looking fragile for now investors agree that the downgrade is unlikely to do much to shift international demand for treasuries or for us stocks which explains the very muted market reaction but its a dent to the countrys reputation and puts the health of us public finances in the spotlight a factor a number of market watchers expect to act as a negative driver of the dollar over the longer term a may report by moodys analytics  a unit of rating agency moodys investors service which still has an aaa rating for the us government  said a downgrade of treasury debt would set off a cascade of credit implications and downgrades on the debt of many other institutions there have been warnings from rating agencies economists politicians and strategists that the us government spending relative to tax collections isnt sustainable fitch says it expects the us general government deficit to rise to 63 of gdp this year from 37 in 2022 jefferies notes that with two of the three major agencies listing us debt at aa us bonds no longer count as aaa in some key indices however according to jefferies most investors have moved away from some of the stricter criteria around holding triplea rated debt given germany is the only large issuer left with that rating but either way with a presidential election just over a year away its not a good look key developments that could provide more direction to us markets later on wednesday  us corp earnings dupont nemours exelon cvs health entergy kraft heinz garmin yum brands phillips 66 bunge ltd lincoln national albemarle occidental petroleum etsy cognizant technology solutions atmos energy equinix qualcomm mgm resorts ingersoll rand metlife clorox marathon oil  us adp july private sector payrolls eia weekly crude stocks