Stocks turned lower Friday after Moody’s downgraded Italy and Spain’s debt ratings, adding to ongoing jitters over the euro zone debt crisis.
The Dow Jones Industrial Average turned negative, led by BofA [BAC 5.9599 
-0.3201 (-5.1%) 
] and JPMorgan [JPM 31.16 -1.22 (-3.77%) ], afterlogging a three-day rally in the previous session.
The S&P 500 and the tech-heavy Nasdaq were also lower. The CBOE Volatility Index, widely considered the best gauge of fear in the market, traded near 35.
Among the key S&P sectors, financials lagged, while telecom gained.
Fitch slashed Spain’s rating to AA- from AA+, citing risks of slow growth and high regional debt, and Italy’s to A+ from AA-, adding the outlook on its long-term ratings is negative.
In Europe, German Chancellor Angela Merkel and French President Nicolas Sarkozy were split ahead of crucial summit talks over the weekend over how to strengthen European banks and fight financial market contagion to prepare for a possible Greek default.
Meanwhile, Moody’s downgraded 12 UK financial institutions, saying it sees a decreased likelihood of government support for smaller institutions in particular but specifying the move does not reflect a deterioration in the financial strength of the banking system.
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Fitch always waits to see, what the other 2 will do, and then comes as the last one victoriously on stage.
in other words – of them all, Fitch is the gayest.