• S&P downgraded the credit ratings of Fannie Mae and Freddie Mac and other entities linked to long-term U.S. debt to AA+. S&P also lowered the ratings for: farm lenders; long-term U.S. government-backed debt issued by 32 banks and credit unions; and three major clearinghouses, which are used to execute trades of stocks, bonds and options. • The price of gold streaked past $1,700 an ounce for the first time. The safe haven investment soared $61.40, or 3.7 percent, to settle at $1,713.20.
• Oil plunged to its lowest price of the year. Benchmark West Texas Intermediate fell $5.57, or 6.4 percent, to $81.31 per barrel on the New York Mercantile Exchange.
• The Japanese yen and Swiss franc, which investors view as safe places to park their money, climbed against the dollar and most of the world’s currencies.
• A European Central Bank decision to fight the continent’s debt crisis by buying Spanish and Italian bonds started pushing down the soaring interest rates threatening those countries with financial disaster.
• Greece banned short selling on the stock market for two months, after shares on the Athens Stock Exchange plunged to their lowest level in more than 14 years.
