Key Takeaways
- Fitch Ratings affirmed the United States' sovereign credit rating at 'AA+' with a stable outlook, citing a resilient economy despite rising debt and fiscal deficits.
- President Trump has reportedly ordered the U.S. Navy to restore "old tech" on aircraft carriers, a multi-billion dollar move expected to be formalized via a memorandum as early as today.
- Apple (AAPL) is navigating new tariff pressures by expanding U.S. manufacturing through a deal with Intel (INTC), though its primary supply chain remains overseas.
- Jared Kushner is scheduled to visit Israel next week to advance the administration's "Board of Peace" plan for the transition and disarmament of Hamas in Gaza.
- eBay (EBAY) shares rallied 2.22% to $104.58, snapping a three-day losing streak and outperforming retail competitors Amazon (AMZN) and Walmart (WMT).
Fitch Affirms U.S. Rating Amid Long-Term Fiscal Risks
Fitch Ratings confirmed the United States' Long-Term Foreign-Currency Issuer Default Rating at 'AA+' on Thursday, maintaining a stable outlook. The agency noted that the rating is underpinned by the country's large economy, high per-capita income, and the U.S. dollar's role as the preeminent global reserve currency. However, Fitch warned that high fiscal deficits and a rising government debt burden—forecast to reach 123% of GDP by 2028—continue to constrain the sovereign's credit profile.
The agency projects U.S. economic growth to remain resilient at 1.9% for 2026-2027, a deceleration from the 2.8% growth recorded in 2025. This slowdown is attributed to higher tariffs, government spending cuts, and weakened labor demand observed throughout 2026. Fitch also highlighted that Medicare and Social Security spending are expected to rise by nearly 1 percentage point of GDP by 2032, increasing long-term fiscal pressure.
Trump Directs Costly Navy Tech Reversal
President Trump has directed the U.S. Navy to revert to older technology on its aircraft carriers, a transition expected to cost billions of dollars. According to sources cited by The Wall Street Journal, the President is slated to sign a memorandum today formalizing the change. This move follows previous criticisms by the administration regarding the complexity and reliability of newer electromagnetic launch systems compared to traditional steam-powered alternatives.
The directive comes as the administration intensifies its focus on military readiness and domestic defense manufacturing. While the shift aims to simplify carrier operations, critics point to the substantial financial burden and potential delays in naval modernization. The White House has framed such moves as necessary to ensure the U.S. military remains "rugged and reliable" in contested environments.
Apple Navigates Tariffs via Intel Partnership
Apple (AAPL) CEO Tim Cook continues to manage the impact of Trump’s tariff demands by shifting some production to U.S. soil. Reports indicate that Apple avoided 100% semiconductor tariffs by committing to a deal with Intel (INTC) to manufacture certain chips domestically. Despite these efforts, the bulk of Apple's complex supply chain remains overseas, as the company balances political pressure in Washington with the logistical realities of global electronics manufacturing.
The "American Manufacturing Program" has recently expanded to include partners like Bosch and TDK, with Apple allocating $400 million to new domestic programs. However, the company has also faced rising costs; Cook previously described a "once-in-a-century flood" of component price hikes, leading to price increases for MacBooks and iPads earlier this year.
Kushner to Lead Gaza Peace Talks in Israel
Jared Kushner, acting as President Trump’s envoy, is set to visit Israel next week for high-level discussions regarding the future of Gaza. The visit aims to coordinate the "Board of Peace" transition plan with Prime Minister Benjamin Netanyahu’s government. The plan reportedly centers on the demilitarization of Hamas and the transfer of authority to a technocratic Palestinian government, a proposal that has met with skepticism from some Israeli officials.
The diplomatic mission follows a reported arrangement where Hamas agreed to lay down weapons two weeks ago. Kushner’s trip is seen as a critical step in maintaining the current ceasefire and addressing the humanitarian and security framework required for a potential Israeli military withdrawal from the region.
Market Reaction: eBay Rallies as Retail Peers Slip
In equity markets, eBay (EBAY) shares rose 2.22% to close at $104.58, marking a recovery after a three-day slump. The gain came during a generally positive session where the S&P 500 rose 0.65% and the Dow Jones Industrial Average gained 0.13%. eBay's performance was particularly notable as it outperformed major competitors: Amazon (AMZN) fell 0.80% to $265.13, and Walmart (WMT) declined 0.25% to $115.72.
Market analysts suggest eBay is benefiting from a shift in consumer behavior toward resale and value-based shopping as inflation continues to pressure household budgets. Despite the daily gain, eBay remains approximately 12.35% below its 52-week high of $119.31, which it reached in May. Target (TGT) also saw positive movement, rising 0.98% to finish at $155.51.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.