Decreasing US credit rating will affect its markets

US stocks jumped up last week on the back of a trade truce between America and China, in which they mutually agreed to reduce rates in 90 daysS Technological stocks rose, with Tesla and Nvidia running the package. However, there are no new developments on the tariff front, however, it is unclear whether this navigable mood can continue.

On the one hand, US credit rating was reduced by Moody’s ratings to the second highest. This means that investors may require a higher return for US treasures against their background. The growing profitability of the Ministry of Finance, in turn, may put pressure on stocks. Although Moody is just Last To join Standard & Poor’s and Fitch’s assessments in the US refusal of the highest rating – which did this in 2011 and 2023 respectively – it can send another crack through the already fragile stock exchange.

Although NVIDIA was one of the winners of the rally last week, it is still struggling with chip export restrictions to China and has increased control over its business activities. It’s a big deal because the artificial intelligence sector in China isIs not behind“This to the US and is likely to Reach about $ 50 billion Within three years, according to Nvidia CEO Jenson Huang. The loss of this market would be a “huge loss,” he added.

Whether the rally from last week can be maintained will rely on the titles that will come from the White House this week.

Moody’s Us Us Credit rating
Moody’s Estimates reduce the United States Sovereign Credit rating down one cut to AA1 by AAAWhich is the highest possible, referring to the increasing burden of financing the budget deficit and the debt of the federal government. Finance Minister Scott Bensten on Sunday called a decrease a “Lag“Claiming that it reflects the conditions during the Biden administration.

Winning Week for US Shares
All major American indices have risen on FridayS For the week, S&P 500 jump 5.3% and Dow Jones Industrial Average rises by 3.4%. Thehe Nasdaq Composite pop up 7.2% on the back of Strong testimony from technological stocks as Tesla and Nvidiawho jumped 17% and 16% in the week respectively. American futures slipped on Sunday in the eveningS Region Stoxx 600 Add 0.4% Friday. Shares on Richemont jump 7%after the Cartier owner publishes Better than expected fiscal sales from the fourth quarterin a sign Wealthy users still spend on luxuryS

Nvidia denies sending chip designs to China
After a report In the financial times that Nvidia works on research and developing in Shanghai in the light of New American export curbsThe Chipmaker told CNBC it is “Not sending any GPU designs to China be modified in order to comply with export control. “A source familiar with the question told CNBC that the company rents a new space for current employees, but does not send any IP or GPU designs there.

Trump says he will mediate for peace
US President Donald Trump said on Saturday a publication of Truth Social that he plans to speak separately with Russian President Vladimir Putin and Ukrainian President Volodimir Zelenski in an attempt to Reach the termination of fire between the two sidesS America also works with the UK to create India-Pakistan stop fire Along with “confidence building measures” and dialogue, said Foreign Minister David Lamie on Saturday.

Biden with a prostate cancer diagnosis
Former US President Joe Biden on Friday was diagnosed “aggressive” form of prostate cancerHis office was reported on Friday. “Cancer seems to be sensitive to hormones, which allows effective management,” his office added.

(Pro) Retail profit in Focus this week
The shares gathered last week as investors cheered the White House deal with China to reduce the tariffs of each other. This week, be careful about the profits of Home., Purpose and Tjx for an indication of How the US consumer stays – And how these great retailers will handle the tariffs.

Big Chinese companies like Alibaba show that ads powered by AI

Alibaba, Tencent and JD.com have announced the profit this week, which not only reflects the improvement of Chinese consumer costs, but also the growing benefits of artificial intelligence in advertising.

AI helps Tencent to raise its click-to-success rates for online ads, to nearly 3%, said the company’s management when calling for profits on Wednesday, according to FacSet. This has increased sharply by 0.1% clicking for banner ads historically and about 1% for forage ads, the company said.

JD.com said its marketing revenue rose 15.7% to 22.32 billion yuan for the quarter, also partly attributing, which rise to AI instruments.

Finally, Alibaba noted that the marketing revenues it calls “customer management” increased by 12% a year to nearly $ 10 billion, partly thanks to the increased use of Quanzhantui’s AI tool to increase the marketing efficiency of traders.