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Should markets worry about the U.S. credit downgrade?

And what's at stake for the Justice Department as it prosecutes Donald Trump?

It's just worth bearing in mind that there was a long time when a lot of people thought this case would just never happen because it just seemed sort of unfathomable. And yet here we are.

Plus, why private equity and hedge funds are bracing for an SEC overhaul? It's Wednesday, August 2nd.

I'm Ann Marie for Toly for the Wall Street Journal. This is the PM edition of What's News, the top headlines and business stories that moved the world today.

As we reported on this morning's show, the U.S. government's credit rating has been downgraded by credit ratings agency Fitch to double A+.

One notch below the top triple A grade. Global stocks fell as investors took stock of earnings and the downgrade.

And in the U.S., the major indexes ended the day lower. But the market response so far has been fairly muted.

Joining me now is Spencer Jacob, global editor of the Wall Street Journal's herd on the street column.

Spencer, why are investors shrugging off initially at least this downgrade?

Well, part of it is the sort of boy who cried wolf phenomenon. So in 2011, standard and pours really shocked the market with a downgrade of the U.S. credit rating.

And the standard and pours 500 over the course of a few weeks fell almost into a bear market.

And ironically, there was a rush to safety which meant that investors bought U.S. government bonds, the very thing that had been downgraded.

So what is the past reaction? Tell us.

The key question really is there's this sense that everything has been fine in the past.

And it's not just 2011. You've had many people warning over the decades that the U.S. is on an unsustainable fiscal trajectory.

You had Ross Perot run for president in 1992 and we had almost 20% of the vote really on that basis where you called the debt the crazy ant you lock in the basement.

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