www.StockMarketFunding.com S&P 500 Index Options Trading During Massive Market Selloff Due to S&P Downgrade. S&P downgrades Fannie and Freddie, US-backed debt S&P downgrades Fannie and Freddie, farm lenders and bank debt backed by US government. Standard & Poor’s Ratings Services on Monday downgraded the credit ratings of Fannie Mae and Freddie Mac and other agencies linked to long-term US debt. The agency also lowered the ratings for farm lenders; long-term US government-backed debt issued by 32 banks and credit unions; and three major clearinghouses, which are used to execute trades of stocks, bonds and options. All the downgrades were from AAA to AA+, reflecting the same downgrade S&P made of long-term US government debt on Friday. S&P said the agencies and banks all have debt that is exposed to economic volatility and a further downgrade of long-term US debt. Their creditworthiness hinges on the US government’s ability to pay its own creditors. Stocks plunged further after the downgrades. The Dow Jones industrial average fell more than 300 points, or 2.8 percent. The S&P 500 stock index tumbled 3.4 percent. Investors seeking safety drove gold prices up and Treasury yields down. Monday’s downgrades of the mortgage giants Fannie and Freddie reflected their “direct reliance” on the US government, S&P said. Fannie and Freddie own or guarantee about half of all US mortgages, or nearly 31 million home loans worth more than $5 trillion. As part of a nationalized system, they …

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