Summary Box: Ireland debt downgrade sinks stocks

AP News
Posted: Jul 12, 2011 5:01 PM
Summary Box: Ireland debt downgrade sinks stocks

IRELAND DOWNGRADED: A late-day downgrade of Ireland's debt to junk, or speculative status by Moody's sent stocks lower Tuesday. Moody's already downgraded the debt of Greece and Portugal to junk.

SLIVER OF HOPE: Fed officials remain divided over new steps to stimulate the economy. Some Fed officials argued at the bank's June meeting that the economy might need more stimulus if growth remains too slow to reduce unemployment.

TROUBLE IN ITALY: Worries that Italy might need help managing its debts kept stocks in check for most of the day. A successful auction of Italian government bonds and a promise to fast-track austerity measures there helped ease those fears.