In a week packed with geopolitical tension, economic shifts, and market volatility, Moody’s decision to downgrade the U.S. credit outlook has sent ripples through global financial markets. The yield on the 30-year U.S. Treasury surged past 5%, reflecting investor concerns about long-term fiscal stability and increasing borrowing costs.

The downgrade arrives just as former President Donald Trump ramped up rhetoric on trade, warning that tariffs could return if global partners don’t engage “in good faith.” The former president also saw momentum on his tax policy front, as his proposed tax bill advanced after Republican leaders agreed to speed up Medicaid cuts—a controversial move likely to spark renewed debate on healthcare.

On the international stage, Trump is preparing for a high-stakes call with Russian President Vladimir Putin aimed at brokering an end to the war in Ukraine. The EU, meanwhile, has reiterated its call for a ceasefire, emphasizing diplomacy even as it prepares for a more assertive defense strategy. A newly agreed €150 billion loans-for-arms scheme underscores the bloc’s changing posture.

Trade tensions remain front and center. Canada pushed back on a recent Oxford report claiming most U.S. tariffs had been lifted, insisting many still remain in place. Across the Atlantic, the ECB’s Christine Lagarde described the euro’s recent strength as “counterintuitive, but justified,” even as former ECB hawks suggest interest rates may need to fall below 2% to sustain growth. The EU projects that inflation across the eurozone could fall below 2%, in part due to cooling effects of renewed U.S. tariffs.

In a sign of thawing post-Brexit relations, the UK and EU announced a breakthrough in key terms of a trade reset, while UK home sellers lifted asking prices to record highs amid rebounding demand.

Asia, too, faces headwinds. China’s consumer spending disappointed investors, overshadowing strong factory data, while Japan’s Prime Minister Shigeru Ishiba saw a drop in public support. Still, no leadership change is expected before July. In Australia, optimism rose as officials declared the country “up for a deal” with the EU after years of trade stalemate.

On the tech front, Nvidia is making aggressive moves to solidify its AI dominance. The company announced plans to accelerate AI chip communication and is teaming up with TSMC and Foxconn to build a supercomputer for Taiwan. Qualcomm is also entering the fray, unveiling a data center CPU designed to integrate with Nvidia’s AI infrastructure. Meanwhile, Alibaba shares slid amid scrutiny of its AI collaboration with Apple, signaling rising regulatory pressure on cross-border tech deals.

In the aerospace sector, the U.S. Department of Justice revealed no final decision has been made on whether to drop the criminal case against Boeing, leaving the company’s legal future uncertain.

Finally, in a nod to regional stability, Iran reaffirmed its commitment to peaceful nuclear energy, amid continued scrutiny from international observers.

The global economic and geopolitical landscape is in flux. From shifting trade policies to evolving tech alliances and changing monetary strategies, investors and policymakers alike are bracing for a turbulent second half of the year. With central banks, corporate giants, and political leaders all playing pivotal roles, the path forward remains complex and unpredictable.