U.S. stock exchange traded funds reversed into negative territory Friday after Fitch downgraded Italy and Spain, which also sent euro-pegged ETFs lower.
Stock ETFs opened higher Friday after the September nonfarm payrolls report came in stronger than expected. [ETFs Rise After Jobs Report]
However, equities faded following headlines the two European countries saw their credit ratings cut.
“The downgrade reflects the intensification of the Euro zone crisis that constitutes a significant financial and economic shock which has weakened Italy’s sovereign risk profile,” Fitch said in a statement on its Italy move.