Fitch Ratings downgraded the US economy to ‘AA+’ after S&P Global downgraded national debt in 2011.

The downgrade was attributed to budgetary deterioration and frequent debt ceiling talks.

Investors reacted by avoiding riskier assets, with Treasury rates declining 3 basis points and Nasdaq futures sank 0.7%.

The dollar rose 0.2% after falling after the downgrade.

The market impact from the downgrade news is expected to be limited, and Friday’s jobs report could trump it as monetary policy remains the dominant driver for yields.

The US economy grew faster than projected in the second quarter due to a solid labor market and consumer spending.

Fitch maintained the US “country ceiling” at AAA, reassuring markets that corporate debt repayments could be made in foreign currencies.