TL;DR

Moody’s downgrades U.S.; Treasuries, stocks sell off; Nvidia expands AI; Bitcoin hits record.

Highlights

• Moody’s downgraded the U.S. credit rating to Aa1, triggering a broad selloff in Treasuries and equities; 30-year yield hit 5.02%, S&P 500 futures -1.2%, gold up 1–2%1.
• House panel advanced Trump’s tax bill, proposing permanent tax cuts, a 5% remittance tax, and $3.3–$5T added to the deficit over 10 years3.
• Nvidia announced a major AI supercomputer project in Taiwan and new AI hardware, expanding its Asia footprint5.
• Bitcoin closed above $106,500 on record ETF inflows and inflation concerns; MicroStrategy bought 7,390 BTC for $765M810.
• U.S. Senate to vote on the GENIUS Act for stablecoin regulation; CME to launch XRP futures9.
• Alibaba shares fell up to 4.8% in Hong Kong and 1.9% premarket in the U.S. after Trump administration scrutiny of a potential Apple -AI partnership7.
• Apple to allow EU users to select third-party voice assistants, reflecting regulatory pressure and AI development delays6.
• China’s April industrial output beat forecasts, but retail sales and home prices weakened; U.S. tariffs cited as a headwind12.
• Eurozone 2025 growth forecast cut to 0.9% due to U.S. tariffs; ECB signals possible rate cuts below 2%1314.
• Japan’s 40-year bond yield hit 3.48%, highest in 20+ years, as fiscal warnings intensify; U.S. and Japan yields rising together15.
• UnitedHealth CEO bought $25M in shares as stock rebounded to $300; stock remains a drag on the Dow20.
• Blackstone to acquire TXNM Energy for $11.5B, continuing U.S. utility sector M&A11.
• Regeneron to acquire 23andMe’s assets for $256M in bankruptcy auction17.

Commentary

U.S. markets face a risk-off start after Moody’s credit downgrade, with Treasuries selling off sharply and the 30-year yield breaching 5%1. Equity futures are down across the board, led by the S&P 500 and Nasdaq, as investors reassess U.S. fiscal risks1. The House’s advancement of a major tax bill that could add trillions to the deficit is likely to keep pressure on yields and fuel ongoing debate about debt sustainability3. Gold ’s move higher and a weaker dollar signal increased demand for safe havens1.

In tech, Nvidia ’s aggressive AI expansion in Asia stands out as a relative bright spot, though broader risk aversion may weigh on tech stocks at the open5. Apple faces regulatory and competitive headwinds in the EU6, while Alibaba is under pressure after U.S. scrutiny of a potential Apple partnership7. These developments could add volatility to large-cap tech and Chinese ADRs.

Crypto markets remain resilient, with Bitcoin setting new highs on ETF inflows and inflation worries8. Regulatory momentum continues, with the Senate voting on stablecoin rules and CME launching XRP futures, further institutionalizing the sector9. MicroStrategy ’s large BTC purchase underscores ongoing corporate interest10.

Global macro signals remain mixed. China’s industrial output beat estimates, but weak retail and property data—alongside U.S. tariffs—highlight persistent challenges12. The eurozone faces slower growth and potential ECB rate cuts1314, while Japan’s surging long-term yields and fiscal warnings echo U.S. debt concerns15. M&A activity in U.S. utilities (Blackstone /TXNM ) and healthcare (Regeneron /23andMe) continues, but is unlikely to offset macro headwinds1117.

Traders should monitor U.S. rates, fiscal headlines, and tech/crypto volatility. Safe havens and defensive positioning may remain in focus unless bond yields stabilize.