Update: August 8th, 4:15 p.m.
The stock market took a major dip Monday.
The Dow Jones lost an astronomical 634 points. Nasdaq plummeted more than 174 points, and the S&P 500 lost nearly 80 points.
Monday afternoon, President Barack Obama addressed the nation, his first reaction since Standard & Poor's downgraded US bonds late Friday. President Obama rejected the AA+ rating and stated, "No matter what some agency may say, we've always been and always will be a AAA country."
However, stock markets dropped sickeningly. In addition to the major US drops mentioned earlier, European stocks dropped to a two year low, and gold was up to an all time high, $1,700- a sign that investors are scared.
Last week's debt ceiling deal appears to be not big or bold enough. Former Assistant Treasury Secretary Neel Kashkri tells NBC News, "No one touched entitlement spending. No one fundamentally touched tax reform and so until republicans and democrats show an ounce of backbone and actually do what's in the interest of the American people, rather than what's in their own immediate, political interest, I can't argue with S&P's conclusion."
As the S&P dropped to a AA+ raating, experts say mortgage rates could rise, driving down home values and sales.
Stocks continue to battle Monday morning, after the S&P downgrade Friday.
The U.S. market plunged Monday, as Wall Street begins reaction to the debt downgrade.
The S&P 500 started the day plummeted 203 points, the S&P 500 dropped 25 points, and NASDAQ dipped 58 points.
NBC25 is investigating the stock market mayhem, and will speak with financial experts on what impact this will have.
We’ll have the complete report on NBC25 News at 6:00 p.m.
In the meantime, we want to hear your ideas. What do you think the United States needs to do to grow the economy?
