

Moody’s Downgrades U.S., “Eat the Tariffs,” Nvidia CEO’s AI Keynote 5/19/25
May 19, 2025
Rick Santelli, an on-air editor for CNBC, and Tom Lee, Head of Research at Fundstrat Global Advisors, delve into Moody's downgrade of the U.S. credit rating, igniting discussion on market reactions and the 30-year yield spike. They dissect President Trump's remark about Walmart "eating the tariffs" and explore the implications for retailers. The conversation also covers Nvidia's latest AI innovations, highlighting the strategic partnerships shaping tech's future, and insights into JP Morgan's Investor Day and the financial landscape.
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Moody's Downgrade Mostly Priced In
- Moody's downgrade of the U.S. credit rating was largely priced in and signals no immediate bond market alarm.\n- The real concern emerges only if U.S. debt auctions fail, highlighting sustainability issues.
Deregulation Could Outpace Tax Cuts
- Deregulation could provide a bigger boost to earnings than tax cuts alone in 2026.\n- Removing regulatory costs (over $2 trillion) is more impactful than tax changes for U.S. companies.
Watch Consumer Confidence Closely
- Monitor consumer confidence and job security closely, as consumer health is critical to avoiding recession.\n- Inflation remaining contained supports the consumer's ability to stay optimistic and spend.