Dah Sing Bank: U.S. stocks are expected to continue benefiting from developments related to artificial intelligence in the medium to long term, maintaining a positive outlook
The latest investment hotspot analysis titled "The Federal Reserve is expected to cut interest rates twice this year, and growth may slow" released today by the Economic Research and Investment Strategy Department of Dah Sing Bank states that U.S. stocks are expected to continue benefiting from developments related to artificial intelligence in the medium to long term, thus maintaining a positive outlook on U.S. stocks for the time being. Concerns about inflation and the outlook for government fiscal deficits may weigh on the recent performance of major bond markets, but the uncertainty surrounding tariff policies may limit the upward potential of U.S. Treasury yields in the medium to short term, with U.S. bonds likely to slightly outperform other developed market sovereign bonds recently. The Federal Reserve has kept interest rates unchanged but has lowered its economic growth forecast while raising its inflation prediction. Powell believes that the impact of tariffs on inflation is only temporary. U.S. stock valuations have adjusted to relatively reasonable levels, and the upward potential for Treasury yields is limited, which may support U.S. bond performance in the medium to short term. Additionally, the decline of the U.S. dollar seems to have stabilized, and geopolitical factors may prompt Europe to significantly increase defense investments, thereby supporting the recent trends of the euro and the pound
According to the latest investment hotspot analysis titled "The Federal Reserve is Expected to Cut Interest Rates Twice This Year, Growth May Slow" released today by the Economic Research and Investment Strategy Department of Dah Sing Bank, it is expected that the U.S. stock market will continue to benefit from developments related to artificial intelligence in the medium to long term, thus maintaining a positive outlook on U.S. stocks for the time being. Concerns about inflation and the outlook for government fiscal deficits may weigh on the recent performance of major bond markets, but the uncertainty surrounding tariff policies may limit the upward potential of U.S. Treasury yields in the medium to short term, and U.S. Treasuries may slightly outperform other developed market sovereign bonds recently.
The Federal Reserve has kept interest rates unchanged but has lowered its economic growth forecast while raising its inflation prediction. Powell believes that the impact of tariffs on inflation is only temporary. U.S. stock valuations have adjusted to a relatively reasonable level, and the upward potential for Treasury yields is limited, which may support U.S. Treasury performance in the medium to short term. Additionally, the decline of the U.S. dollar seems to have stabilized, and geopolitical factors may prompt Europe to significantly increase defense investments, thereby supporting the recent trends of the euro and the pound