CNBC Daily Open: Markets see slender positive aspects – however darkish clouds loom as yields spike, business talks flip testy

U.S. shares most commonly eked out slender positive aspects in a single day, as buyers glance previous Moody’s downgrade of the U.S.’s credit standing remaining Friday. This extends the markets’ rally from remaining week at the U.S.-China’s brief business truce.

But there are darkish clouds at the horizon. Moody’s downgrade continues to grip the bond marketplace with the 30-year Treasury yield surging previous 5% Monday, hitting ranges now not observed since November 2023. Bridgewater Associates founder and billionaire Ray Dalio warned that the U.S.’s decrease sovereign credit standing understates the risk to U.S. Treasurys, pronouncing the credit score company is not taking into consideration the chance of the government merely printing cash to pay its debt. 

JPMorgan CEO Jamie Dimon additionally cautioned that markets are too complacent on price lists, and expects S&P 500 income expansion to cave in as corporations pull or decrease steering amid business coverage uncertainty.

On the business negotiations entrance, China accused the U.S. of undermining the 2 nations’ initial business settlement, after the U.S. issued an business caution towards the usage of Chinese chips that singled out Huawei. Beijing has demanded that the U.S. President Donald Trump management “correct its mistakes,” a spokesperson for China’s Ministry of Commerce informed a reporter, calling the U.S. Commerce Department’s steering “discriminatory” and “market distorting.”

Pound rallies on Brexit’s go out
The British pound rose towards the U.S. buck after the U.Okay. and the European Union got here to a landmark deal to reset their post-Brexit members of the family. The settlement covers a variety of issues together with safety, power, business, trip and fisheries. Both aspects mentioned they might proceed operating towards a deal addressing unresolved problems similar to permitting younger folks to paintings and trip freely in Europe once more. 

U.S. markets eke out slender positive aspects
The S&P 500 rose rather Monday as buyers appeared previous Moody’s downgrade of the United States’ credit standing. The benchmark added 0.09% to mark its 6th consecutive successful consultation. The Nasdaq Composite inched up 0.02%. The Dow Jones Industrial Average rose 137.33 issues, or 0.32%, due partly to UnitedHealth’s inventory rebounding through an 8% soar after a up to date bout of onerous promoting. European inventory markets have been unchanged Monday, with the pan-European Stoxx 600 remaining flat. 

China says U.S. undermined business talks with Huawei chip caution 
China accused the U.S. of undermining the 2 nations’ initial business settlement after the U.S. issued an business caution towards the usage of Chinese chips that singled out Huawei. Beijing has demanded that the U.S. President Donald Trump management “correct its mistakes,” a spokesperson for China’s Ministry of Commerce informed a reporter.

Trump’s price lists power customs fraud
The U.S.’s new price lists have driven Chinese exporters to increasingly more devote an present delivery fraud, which matches through considerably understating the price of products or mislabeling them, ceaselessly each. Shipments are then routed via shell corporations that may fail to pay price lists, default and stop operation. Experts warn that U.S. companies are underestimating civil and legal dangers through partnering with such exporters.

[PRO] BlackRock’s Rick Rieder says he is discovered the ‘candy spot’ in bonds at the moment even because the marketplace flinches
Rick Rieder, Blackrock’s leader funding officer, mentioned he has discovered a “sweet spot” to spend money on the bond marketplace that includes top returns and is top in high quality. This particular phase trades wealthy because it will get crossover consumers from funding grade, he defined. Read extra about his technique right here.

Trump needs a ‘one-stop buying groceries’ take care of South Korea on business and protection, however there’s a charge

South Korea is making an attempt to strike a deal to flee the U.S. President Donald Trump’s price lists, however the latter is “shopping” for extra. He has pitched to proportion the prices of web hosting U.S. troops within the allied nation — bundling negotiations on business, price lists, and protection cost-sharing right into a unmarried complete deal.

Seoul has been sharing protection prices since 1991 in 3 spaces, particularly logistics, native hard work, and armed forces development. In October 2024, Seoul agreed to boost its contribution for web hosting U.S. troops through 8.3% in 2026, to 1.52 trillion received ($1.13 billion).

While South Korean officers have reportedly mentioned that protection bills are off the desk, the rustic’s two main presidential applicants, Lee Jae-myung and Kim Moon-soo, have hinted that they’re open to discussing a protection cost-sharing settlement.

However, the sort of transactional manner will harm the U.S.’s credibility, Hoshik Nam, assistant professor on the Department of Sociology and Political Science at Jacksonville State University, mentioned. “In the long term, this position could reframe the U.S. as an isolated superpower.”