U.S. stocks $S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$Recently reaching new highs, the related topics and sectors surrounding AI are becoming increasingly popular. $NVIDIA (NVDA.US)$ $Taiwan Semiconductor (TSM.US)$ $ASML Holding (ASML.US)$， $Apple (AAPL.US)$ $Microsoft (MSFT.US)$ $Alphabet-C (GOOG.US)$, among others, have all reached historical highs; the themes related to generative AI continue to be the focal point of the market. The strong demand for semiconductors and data centers driven by generative AI is the core element pushing the aforementioned stocks higher. How should mooers face the current US stocks? Is there a bubble risk? Whether to chase high has been a common question recently, and today, we will discuss these issues in depth and in a straightforward manner.
The path of interest rate cuts is beginning to become clear and normalized.
One of the reasons for the rise of the U.S. stock market recently isthe normalization of interest rates, not just a simple decrease in interest rates. Economically, data shows that U.S. economic activity has been slowing gradually over the past three months, while the strong performance of non-farm data at the beginning of the month also reflects that the economy is very likely in asoft landingstage (the importance of a soft landing has been discussed many times over the past year, detailedsee last year's article), which leads to the opportunity for normalization of interest rates, becoming a major factor supporting the rise of the stock market.
FromCME fedwatchIt can be seen that the latest Interest Rates futures indicate that the market estimates a significant possibility of a rate cut in September,...