Reduction US credit rating will affect its markets

Last week, US shares jumped at the back of the trading truce between America and China in which they mutually agreed to cut tariffs by 90 days. Technology stocks flew off, and Tesla and Nvidia are packed. However, there is no new developments on the tariff front, however, it is unclear whether this live mood lasts.

First, the US credit rating was reduced by Moody’s ratings to the second. This means that investors may require greater profitability for us, Treasury against the background of their allegedly less reliability. Increasing the Treasury, in turn, can press on stocks. Although Moody is just last To join the Standard & Poor’s and Fitch ratings, pressing the US from the highest ranking – which has done it in 2011 and 2023 – it can send another crack through the already delicate stock market.

Although Nvidia has become one of the winners of the rally last week, it is still fighting with restrictions on chips to China and increased control over its business activity. This is a big deal because China’s artificial intelligence sector “Not behind“It is in the US and probably will reaches about $ 50 billion For three years, according to Nvidia Jensen Huang. The loss in this market would be a “huge loss,” he added.

Or maybe last week’s rally will count on headlines that will come from the White House this week.

Moody’s cuts US credit rating
Gloomy Rating reduced the US Sovereign credit rating underneath one slicing up to AA1 from AAAWhich is the highest as possible, citing the gravity of financing and debt of the federal government. Treasury Secretary Scott Sevents on Sunday called a lowering A “The indicator of the lag“Claiming that this reflects the conditions during the Biden administration.

Winning the Week for US shares
All major US indices grew on Friday. For a week, S&P 500 grew by 5.3% and Dow Jones Industrial Medium They rose by 3.4%. A Nasdaq Composite jumped out at 7.2% on the back Strong shows from technological stocks such as as Tesla and NvidiaWhich a week jumped by 17% and 16% respectively. US futures slipped on Sunday evening. Regional Europe Stoxx 600 Added 0.4% on Friday. Shares Richemont After the publication of the owner Cartier jumped at 7% Better than expected, financial sales in the fourth quarterin the sign Wealthy consumers still spend on luxury.

Nvidia denies sending china structures to China
Following for a report In financial times when Nvidia is working on the research and development center in Shanghai in light New American export curbsThe manufacturer of the chips said CNBC that’s’By sending no GPU designs to China To be changed to execute export elements. “A source familiar with this issue said CNBC that the company rents a new space for current employees but sends no IP or GPU designs there.

Trump says it will brand peace
US President Donald Trump said on Saturday in a report of social truth that he plans to talk separately with Russian President Vladimir Putin and President of Ukrainian Floodimir Zelensky on Monday, trying to try reach the ceasefire between the two countries. America also works with Britain to create India-Pacisto ceasefire Along with the Measures of Trust and Dialogue, British Foreign Minister David Lami said on Saturday.

Biden with prostate cancer
On Friday, former US President Joe Biden was diagnosed “aggressive” form of prostate cancersaid his office on Friday. “Cancer appears to be sensitive to hormones that allows effective management,” the office added.

(Pro) This week’s income is the center of attention to the center of attention
Last week, shares united when investors cheered the White House deal with China to cut tariffs on each other. This week follow the profits from A home depot. Target and Tjx To indicate As the US consumer continued – And how these large retailers will deal with tariffs.

Big Chinese companies such as Alibaba show that ads that work on AI

This week Alibaba, Tencent and JD.com reported a profit that not only reflects the improvement of Chinese consumer expenses, but also the increase in artificial intelligence.

AI helps TENCENT raise its rate-on-measures for online advertising-to almost 3%, said the company’s call company on Wednesday, FACSET transcript reports. This is dramatically compared to 0.1% pressing the banner ads historically, and about 1% for channels, the company reports.

JD.com said its marketing revenues increased by 15.7% to 22.32 billion yuan per quarter, also partially attributed to the rise to AI tools.

Finally, Alibaba noted that the marketing profits, which it calls “customer management”, increased by 12% a year to almost $ 10 billion, thanks to partially increasing the use of AI Company, Qanzhantui, for improving the efficiency of marketing traders.