U.S. Credit Rating Downgraded – Momo Crowd Aggressively Buys The Dip
Portfolio Pulse from The Arora Report
Fitch has downgraded the U.S. credit rating from AAA to AA+ due to anticipated fiscal deterioration, high and growing government debt burden, and erosion of governance. Despite this, the U.S. stock market has not been significantly impacted, with the 'momo crowd' buying the dip. The U.S. Treasury Department plans to borrow about $1T in Q3, the largest amount ever for a third quarter. ADP data shows strong job growth, contradicting narratives of a potential Fed rate cut. Money is flowing out of Apple, Nvidia, Alphabet, Amazon, and Tesla, but into Microsoft and Meta. AMD's AI products may dilute its margins. Gold, oil, and Bitcoin are seeing buying activity.
August 04, 2023 | 11:37 am
News sentiment analysis
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NEGATIVE IMPACT
Money is flowing out of Apple in early trade.
The outflow of money from Apple in early trade could negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
AMD's AI products may dilute its margins.
The potential dilution of AMD's margins due to its AI products could negatively impact its stock price.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Money is flowing out of Amazon in early trade.
The outflow of money from Amazon in early trade could negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Money is flowing out of Alphabet in early trade.
The outflow of money from Alphabet in early trade could negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Money is flowing out of Nvidia in early trade.
The outflow of money from Nvidia in early trade could negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Money is flowing out of Tesla in early trade.
The outflow of money from Tesla in early trade could negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Despite the U.S. credit rating downgrade, the SPDR S&P 500 ETF Trust has not been significantly impacted in early trade.
The U.S. credit rating downgrade has not had a significant impact on the SPY ETF in early trade, indicating that the market is not overly concerned about the downgrade.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
ADP data shows strong job growth, contradicting narratives of a potential Fed rate cut.
The strong job growth data from ADP contradicts narratives of a potential Fed rate cut, which could positively impact ADP's stock price.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Bitcoin is seeing buying activity on the U.S. credit rating downgrade.
The buying activity in Bitcoin due to the U.S. credit rating downgrade could positively impact its price.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Gold is seeing buying activity on the U.S. credit rating downgrade.
The buying activity in gold due to the U.S. credit rating downgrade could positively impact the price of the GLD ETF.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Money is flowing into Meta in early trade.
The inflow of money into Meta in early trade could positively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Money is flowing into Microsoft in early trade.
The inflow of money into Microsoft in early trade could positively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Money flows in Invesco QQQ Trust Series 1 started the day out by being very negative, but they have turned positive as of this writing.
The positive turn in money flows in the QQQ ETF could positively impact its price.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The momo crowd is buying oil in the early trade.
The buying activity in oil by the momo crowd in early trade could positively impact the price of the USO ETF.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70