Trump Trade: Moody’s downgrades U.S. ratings to Aa1 from Aaa

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly:

U.S. RATINGS: Moody’s Ratings Service cuts the U.S. long-term issuer and senior unsecured ratings to Aa1 from Aaa, citing the trend of large annual fiscal deficits and growing interest costs. Moody’s has also changed the outlook on the U.S. to stable from negative. “We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration,” the agency said. Moody’s expects larger deficits over the next decade, it added.

APPLE DEAL WITH ALIBABA: The White House and officials are scrutinizing Apple’s (AAPL) plan to enter a deal with Alibaba (BABA) that would make the Chinese company’s AI available on iPhones in China, Reuters reports. Authorities are concerned the deal would help a Chinese company improve its AI capacities, broaden the reach of Chinese chatbots with censorship limits, and deepen Apple’s exposure to Beijing laws, people familiar with the matter said, according to Reuters.

EAT THE TARIFFS: President Trump said via Truth Social that Walmart (WMT) “should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, “EAT THE TARIFFS,” and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”

TRADE TALKS: The U.S. and the European Union have initiated serious trade discussions to head off the biggest of President Trump’s tariffs, breaking an impasse that left the bloc near the black of the line for trade talks with the White House, the Financial Times’ Aime Williams, Peter Foster, and Andy Bounds report. Both parties in recent days have exchanged negotiating documents for the first time, outlining areas for talks ranging from tariffs to digital trade and investment opportunities, the authors say, citing an EU briefing note.

FED RATES: President Trump said via Truth Social, “THE CONSENSUS OF ALMOST EVERYBODY IS THAT, “THE FED SHOULD CUT RATES SOONER, RATHER THAN LATER.” Too Late Powell, a man legendary for being Too Late, will probably blow it again – But who knows???”