Dah Sing Bank: Although U.S. stock valuations are relatively high, leading technology stocks are expected to continue to drive investment sentiment in the short term

According to the Zhitong Finance APP, the Economic Research and Investment Strategy Department of Dah Sing Bank published an investment hotspot analysis titled "Trump Returns to the White House, US Stocks and US Dollar Rise," indicating that Trump defeated Harris and was re-elected as President of the United States after four years. Although US stock valuations are relatively high, leading technology companies have recently shown strong performance, which may continue to positively influence the investment atmosphere in the short term. In the medium to long term, they are also expected to benefit from interest rate cuts and developments in artificial intelligence-related technologies. If the US job market remains robust, it will increase investors' confidence in a soft landing for the US economy, which will also help US stocks continue to outperform other mature markets.

US bonds may face short-term pressure. Trump's advocacy for expansionary fiscal policy may stimulate inflation, which could raise concerns about the US federal government's debt burden and even affect the Federal Reserve's interest rate cut prospects, leading to upward pressure on Treasury yields in the short term. The outlook for sovereign and investment-grade corporate bonds has been temporarily downgraded to neutral.

Dah Sing maintains a slightly optimistic view on US stocks, and the outlook for the US dollar index has been upgraded to neutral/preferential. The market's expectations for the Federal Reserve to cut interest rates next year may be adjusted downward, and Trump's advocacy for increased tariffs may bring new shocks to international trade, putting short-term pressure on non-US currencies