Stocks tank on credit downgrade

Published August 8, 2011 4:00am ET



Stocks tanked on Monday in the first trading day since Standard and Poor’s downgraded the United States’ credit rating, but ironically, U.S. Treasuries rallied as investors sought a safe haven.

The Dow Jones Industrials average tumbled 635 points, or 5.6 percent. It’s now lost 15 percent, or over 1,900 points, since its close on July 21.

While the S&P downgrade added to the overall fear in markets, investors ultimately decided that given the turmoil in Europe, U.S. bonds are still relatively speaking, a safe investment. Yields on 10-year Treasuries actually reached their lowest levels since January 2009.