S&P cuts US outlook from stable to negative

Standard & Poor's has cut its outlook for the US from stable to negative, causing the dollar and shares to tumble.

The ratings agency cited the US' soaring budget deficit and its inability to come up with a credible plan to tackle the debt as the primary reason for the downgrade. Standard & Poor's credit analyst Nikola Swann said: "More than two years after the beginning of the recent crisis, US policymakers have still not agreed on how to reverse recent fiscal deterioration or address longer-term fiscal pressures." S&P has retained the US' AAA credit rating. In reaction to the downgrade, the Nasdaq fell 1.73% to 2,717, while the Dow Jones fell 1.71% or 211 points to 12,130, and the S&P dropped...