After the Moody’s credit downgrade on Friday evening, US markets opened down ~1% yesterday before recouping pretty much all of those losses. As the price action tells you the move wasn’t all that surprising but did once again shine a light on the growing fiscal deficits at a time when Congress is working on a bill that will only increase those. We’ll touch on Washington in a second. On the trading floor the anticipation is building for Memorial Day weekend and the start of the Knicks playoff series. This is only being magnified as today is another listless trading session within US equity markets, though things are a bit more interesting sovereign debt markets. Most major US indices are trading in a tight range on either side of unchanged and completely withing yesterday’s range.

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