US Stock Market Key Five Charts | Investors Go on a Buying Spree, Semiconductor Stocks Reach New High Valuations, but AI Stocks Have Stalled
Worrisome concerns include: global stock market EPS is declining, with particular caution warranted for the US stock market! Over the past four weeks, earnings expectations for the S&P 500 index have once again decreased and may continue to decline in the third quarter.
- Under the wave of artificial intelligence (AI), the US stock market, especially the technology sector, has experienced a half-year surge.
As a result, the valuation of the US semiconductor sector has skyrocketed to a historical high, while the valuation of sectors such as energy and finance, which have fallen against the market trend this year, has reached a historical low.
- Despite the soaring prices, investors are still buying US stocks like crazy!
Compared to "safe haven" assets, funds continue to flow into risky assets.
- However, at the same time, worrying issues have emerged.
Looking at global stock markets, from the US S&P 500 Index, the European Stoxx 600, to the Japan TOPIX Index and the MSCI Emerging Markets Index, earnings per share (EPS) have been declining.
- Especially in the US stock market, we should not be overly optimistic about corporate earnings.
Because in the past four weeks, the earnings expectations for the S&P 500 Index have once again declined, and they may continue to decline in the third quarter.
- What's more concerning is that the AI stocks that have been driving the US stock market in the first half of the year seem to have lost their momentum.
However, it's not a big deal if they can't rise, but what if they fall...?
