A trade ceasefire between the United States and China, in which both parties agreed to reduce tariffs for 90 days, caused U.S. equities to soar last week. Technology stocks surged, with Nvidia and Tesla at the top. However, it’s uncertain if this positive outlook can endure in the absence of any developments on the tariff front.
Moody’s Ratings reduced the U.S. credit rating to the second-highest. Because of this, investors may expect larger returns from U.S. Treasurys despite their perceived lack of reliability. Consequently, rising Treasury rates may put pressure on equities. Despite being the most recent to join Standard & Poor’s and Fitch Ratings in removing the United States from the top rating.
Nvidia is still battling chip export limitations to China and heightened scrutiny over its business operations, despite being one of the rally’s winners last week. That’s significant because, according to Nvidia CEO Jensen Huang, China’s artificial intelligence industry is “not behind” that of the United States and is expected to reach $50 billion in three years. It would be a “tremendous loss” to miss that market, he continued. The White House’s headlines this week will determine whether or not last week’s rise can continue.
Also Read:
Trump Orders Target to Abandon its Diversity Initiative
The UAE and the UK Strengthen their Cooperation to Stop illegal Financial Flows
