Markets in the coming week will digest the once unthinkable - the downgrade of the United States gold standard AAA rating - and the impact it will have on other credit ratings and investor confidence. The Standard and Poor's one-notch downgrade to AA plus came late Friday, just hours after European officials managed to convince markets they were at least working towards a plan to stop Italy from being sucked down by the credit crisis.

The Fed also meets Tuesday, and traders have increasingly been looking for it to restart its extraordinary easing program or take other steps, though Fed watchers doubt such a move. This is something they gave the criteria on and I guess they stuck to it. I really thought they'd take the two stage approach and see how further spending cuts would come along," said George Goncalves, chief Treasury strategist for Nomura Americas.

It depends on the market conditions. I don't think given the environment we're in right now, this was the optimal time to be seeing a downgrade of the largest nation in the world.

The only fear I have is that after a pretty rough week in the risk markets, how is this going to be perceived by investors," he said. What other actions or unintended consequences will follow are yet to be seen. Late Friday, the Fed and FDIC said U. But more importantly, we'll have to see if this will potentially trigger other rating actions, and we'll see what that means on Monday for broader markets," Goncalves said.

Moody's and Fitch have both reaffirmed the AAA rating for now, though they have the U. The downgrade also came at the end of a harrowing week for stocks. Equities markets worldwide suffered their worst declines since the financial crisis, as investors shunned risk assets and ran to the safety of cash and Treasury securities. Marc Pado, Cantor Fitzgerald market strategist, said it may be that stocks will take the news better than some might expect because the market has been reacting to the potential downgrade by one or more notches for the past two weeks.

There might be more angst in trading there before our markets open. But after the first hour, I think we'll shake it off," he said. The stock market selling reached a crescendo Thursday when the Dow fell more than points, leading some investors to wonder whether a moment of capitulation had occurred.

On Friday, stocks swung volatility, with the Dow traveling more than points before finishing up 60 points to 11, You have a dramatic move down, a lot of volatility," said Ed Keon, managing director at Prudential Financial's Quantitative Management.

There's no guarantee this is the bottom, but these big whipsaw moves are the kind of things you see. Stocks have been rocked in the past two weeks stock market game with fake money deteriorating economic news, and also by the loss of confidence in Europe's ability to stop its debt crisis from spreading.

The debt ceiling debate in Washington was also a factor, as it generated the specter of the U. They pretty much laid down the law.

Meanwhile, Europe's efforts to stop the sell off in the peripheral sovereign debt, particularly Italy's, will be a key in the coming week.

Italian President Silvio Berlusconi Friday announced budget reform measures. In turn, the European Central Bank will now start buying its bonds Monday, make money donate bone marrow to an Italian official quoted by news wires.

The markets were encouraged by the move. Berlusconi seemed to hint at it. That will be a focus from a policy perspective," said Tony Crescenzi, senior strategist at Pimco.

Crescenzi said the Fed, at its meeting Tuesday, may discuss new remedies for the economy's sluggishness but it is not likely to reveal them until the minutes of its meeting are released three weeks later.

That will also be about the time that Fed Chairman Ben Bernanke speaks at the Fed's annual meeting in Jackson Hole, where he discussed quantitative easing for the first time. However, the Aaa downgrade stock market might be institute of stockbrokers vocal in its statement Tuesday if financial markets are in disarray.

He said the Fed had been "engaged in so-called watchful, waiting, at least until this past two weeks of events, which now have upended confidence at the CEO level, the consumer level and the investor level.

It may be too soon for the Fed to act on a changed climate," he said. The Fed's meeting is the big event, but investors will also be watching retail sales and consumer sentiment Friday and weekly jobless claims Thursday. There are other reports worth monitoring, including forecast euro rand exchange rate NFIB small business survey and productivity and costs Tuesday.

Wednesday's reports include the JOLTS, which aaa downgrade stock market labor market details. Wholesale trade is also reported that day and international trade is released Thursday.

Earnings news is slowing down but there are still a good number of reports this week.

US debt deal: China downgrades America's AAA credit rating | Daily Mail Online

Disneyreporting after Tuesday's bell, and Ciscoreporting Wednesday, are the remaining Dow components yet to report. Retailers also begin to show up on the calendar. Monday's reports include Tyson FoodsScotts Miracle GroU. CellularDollar ThriftyMGM Resorts and Live Nation. On Tuesday, AOLBooz Allen HamiltonBeazer HomesDish NetworksScripps NetworksSunpower and Liberty Media report.

News CorpMacy'sNestlePolo Ralph LaurenAdvanced Auto Parts and Computer Sciences report on Wednesday. Anheuser Busch InBevTim HortonWendy'sKohlsNordstromNvidia and DeVry release results Thursday, and J. Penney and Petrobras report Friday.

Email us at marketinsider cnbc.

Asia Europe Stocks Commodities Currencies Bonds Funds ETFs Investing Trading Nation Trader Talk Financial Advisors Personal Finance Etf Street Portfolio Watchlist Stock Screener Fund Screener Tech Mobile Social Media Enterprise Gaming Cybersecurity Tech Guide Make It Entrepreneurs Leadership Careers Money Specials Shows Video Top Video Latest Video U. Video Asia Video Europe Video CEO Interviews Analyst Interviews Full Episodes Shows Watch Live CNBC U. Business Day CNBC U.

Britain credit rating downgraded as markets suffer more Brexit losses - as it happened | Business | The Guardian

Primetime CNBC Asia-Pacific CNBC Europe CNBC World Full Episodes. Log In Register Log Out News Economy Finance Health Care Real Estate Wealth Autos Consumer Earnings Energy Life Media Politics Retail Commentary Special Reports Asia Europe CFO Council. Asia Europe Stocks Commodities Currencies Bonds Funds ETFs. Make It Entrepreneurs Leadership Careers Money Specials Shows Investing Trading Nation Trader Talk Financial Advisors Personal Finance Etf Street Portfolio Watchlist Stock Screener Fund Screener.

Tech Mobile Social Media Enterprise Gaming Cybersecurity Tech Guide Video Top Video Latest Video U. Video Asia Video Europe Video CEO Interviews Analyst Interviews Full Episodes. Primetime CNBC Asia-Pacific CNBC Europe CNBC World Special Reports Top States Paris Airshow Trailblazers Trading the World CNBC Disruptor 50 Lasting Legacy Modern Medicine College Game Plan Investing in: Israel Tech Drivers The Brave Ones Trading Nation Shaping the future Future Opportunities.

Register Log In Profile Email Preferences PRO Sign Out. Markets Will Sort Through Credit Downgrade Patti Domm pattidomm. Sandra Baker Photographer's Choice Getty Images. Econo-drama The Fed's meeting is the big event, but investors will also be watching retail sales and consumer sentiment Friday and weekly jobless claims Thursday. Earnings Central Earnings news is slowing down but there are still a good number of reports this week. Patti Domm CNBC Markets Editor.