U.S. stocks mostly made slim overnight gains as investors downgraded their credit ratings to the U.S. last Friday. From last week, the market extended the market rally in the United States-China temporary trade truce.

But there are dark clouds on the horizon. Moody's downgrade continues to capture the bond market, with 30-year fiscal yields soaring on Monday, a level that has not been reached since November 2023. Ray Dalio, founder and billionaire of Bridgewater employees, warned that the lower sovereign credit rating in the U.S. underestimates the threat to U.S. debt, saying it pays the debt liability for debt, which is not about repaying debt.

JPMorgan CEO Jamie Dimon also warned that the market was too complacent about tariffs and expected companies to collapse when companies drag or lower guidance due to trade policy uncertainty.

In terms of trade negotiations, China accused the United States of issuing industry warnings in the United States that it would not use Chinese chips to pick out Huawei. Beijing asks U.S. President Donald Trump administration to "correct its mistakes."

Brexit export rally
The pound rose against the dollar after Britain and the EU reached a landmark deal to re-Brexit relations. The agreement covers a range of matters including security, energy, trade, travel and fisheries. Both sides said they will continue to work on unresolved issues, such as allowing young people to travel freely in Europe again.

Eke stands out in the US market
The S&P 500 rose slightly as investors saw Moody's downgrade of U.S. credit rating. The benchmark increased by 0.09% to mark its sixth consecutive win. Nasdaq Composites rose 0.02%. The Dow Jones Industrial Average rose 137.33 points, or 0.32%, in part because UN Health's stock rose 8% after the recent hard sale. European stock markets remain unchanged on Monday, with the Pan-European STOXX 600 closed.

China says U.S.-Huawei chip warning trade talks undermine
China accused the United States of undermining the initial trade agreement between the two countries after the U.S. issued an industry warning to point out the use of Chinese chips to pick out Huawei. A spokesman for China's Ministry of Commerce told reporters that Beijing asked the administration of US President Donald Trump to "correct its mistakes."

Trump's tariffs drive customs fraud
New U.S. tariffs have prompted Chinese exporters to increasingly commit existing shipping frauds that often significantly underestimate the value of goods or mislabels, which often have both. Then, freight is carried out by Shell that cannot pay tariffs, defaults and stop operations. Experts warn that U.S. businesses underestimate civil and criminal risks by working with such exporters.

(Pro) Rick Rieder of BlackRock
Rick Rieder, chief investment officer at Blackrock, said he found a "best spot" to invest in the bond market that has high returns and high quality. He explained that this particular segment trades affluent because it acquires crossover buyers from the investment rating. Read more about his strategy here.

Trump hopes to reach a "one-stop shopping" deal with South Korea on trade and defense, but with a fee

South Korea is trying to reach a deal to evade tariffs from U.S. President Donald Trump, but the latter is "shopping." He has claimed to share the cost of hosting U.S. troops in allies - bundling negotiations on trade, tariffs and defense cost sharing into a comprehensive deal.

Since 1991, Seoul has shared the cost of defense in three regions (i.e. logistics, local labor and military construction). In October 2024, Seoul agreed to increase its contribution to the U.S. military to 8.3% to 1.52 trillion won (USD 1.13 billion) in 2026.

South Korean officials reportedly said defense payments were not on the table, but two presidential candidates in the country, Lee Jae-Myung and Kim Moon-Soo, said they were willing to discuss a defense cost-sharing agreement.

But this trading approach will damage the credibility of the United States, said Hoshik Nam, an assistant professor in the Department of Sociology and Political Science at Jacksonville State University. “In the long run, this position could restructure the United States into an isolated superpower.”