A temporary US-China trade truce boosted US stocks last week, particularly tech giants like Tesla and Nvidia. However, Moody's downgrade of the US credit rating casts doubt on the rally's sustainability, potentially increasing Treasury yields and pressuring stocks. Nvidia faces challenges from chip export restrictions to China, a significant market. Meanwhile, Chinese tech companies like Alibaba, Tencent, and JD.com reported strong earnings, driven partly by AI-powered advertising, indicating improving consumer spending.

Prepared by Christopher Adams and reviewed by editorial team.