S&P 500 futures have pretty much more than halved losses now, being down just 0.4% after having been down a little over 1% earlier in the session.

It’s been a gradual recovery after a dip in the opening hour of European morning trade. Dip buyers are certainly making themselves known and are we going to see a stronger turnaround when Wall Street steps in later? We shall see.

Just in case you missed the big headline earlier today, Fitch moved to cut US‘ credit rating from AAA to AA+ and that triggered a risk-off wave in markets. That led to some more selling in Europe before the latest turnaround here.

I would think that there would be a further pullback on equities in light of the news and after a strong run of gains in July. But as mentioned here, this is a market that can quickly brush off almost anything and this latest news is arguably no exception to that matter of fact.

This article was written by Justin Low at www.forexlive.com.