CMB: US equities are poised to continue benefiting from AI-related developments in the medium and long term, and its bullish outlook remains intact.

The latest investment hotspots analysis released today by the Economic Research and Investment Strategy Department of Dah Sing Bank, "Fed Expected to Cut Interest Rates Twice This Year, Growth May Slow", suggests that the US stock market is likely to continue benefiting from the development of artificial intelligence in the medium and long term, thus maintaining a positive outlook on US stocks for the time being. However, concerns about inflation and government fiscal deficits may weigh on the recent performance of major bond markets, while the uncertainty of tariff policies may limit the rise of US Treasury bill yields in the short and medium term, potentially allowing US bonds to slightly outperform other mature market sovereign bonds. The Fed's decision to maintain the interest rate unchanged while lowering the growth forecast and raising the inflation projection indicates that the impact of tariffs on inflation is only temporary. The valuation of US stocks has been adjusted to a relatively reasonable level, and the rise of Treasury bill yields is limited, which may support the performance of US bonds in the short and medium term. Additionally, the decline of the US dollar seems to have stabilized, and geopolitical factors may lead to a significant increase in defense investment in Europe, supporting the recent trend of the euro and the pound.