S&P Report: US Outlook Negative

The stock market has responded to an updated ratings outlook from Standard & Poor. The agency changed the outlook for the United States from “stable” to “negative,” although the agency reaffirmed the nation’s triple-A ratings. Kelly Evans, the Wall Street Journal’s “Ahead of the Tape” columnist, explains what this means for the markets. According to S&P, the revised outlook reflects the U.S.’s “very large budget deficits and rising government indebtedness” relative to its triple-A peers. “The path to addressing these is not clear to us,” S&P said.