U.S. stock exchange traded funds (ETFs) started the week sharply lower after Standard & Poor’s cut its ratings outlook on U.S. debt to negative.

S&P reportedly said it’s worried U.S. policymakers may not be able to reach an agreement on reducing the debt. S&P says it sees a 1-in-3 likelihood “that we could lower our long-term rating on the U.S. within two years,” according to WSJ MarketBeat.

Equities were lower after Monday after China again raised reserve requirements for banks. SPDR S&P 500 ETF (NYSEArca: SPY) was down more than 1% in early trading. China on Sunday boosted the requirement on reserves banks must hold, for the fourth time this year. [Will Higher Rates Hit China Real Estate ETF?]

The largest ETF for gold, SPDR Gold Shares (NYSEArca: GLD), traded higher after S&P’s warning on its U.S. credit outlook. The metal ETF notched a new record high Friday.

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