According to the CITIC Securities Research Report, short-term uncertainty and long-term opportunities coexist in US stocks, and the light of day will be seen after the interest rate hike is implemented. After missing the point of this round of interest rate hikes, US stock valuations are under pressure in the short term regardless of whether the Fed raises interest rates in September or not. However, in the medium to long term, the implementation of interest rate hikes is expected to release valuation suppression, compounding the positive attitude of the “Productivity and Employment Task Force” on AI, and the AI narrative of US stocks is expected to continue for a long time. On July 29, the FOMC remained on hold for the fifth time in a row. The three voting committees voted to raise interest rates by 25 bps, and differences within the Federal Reserve were made public. The market showed a fragmented reaction of “short-end pigeons and long-end eagles”. The rising inflation expectations suppressed the US dollar and provided a window for Japan's Ministry of Finance to interfere in the foreign exchange market. The high growth rate of the CSP cloud business mitigated to a certain extent concerns about the sustainability of AI's triple capital expenditure. Short-term interest rate sensitive industries, high valuations and low growth sectors, and small-cap stocks are under pressure, and the next liquidity expectations turn to the Jackson Hole conference in late August or the September interest rate meeting.

According to the CITIC Securities Research Report, short-term uncertainty and long-term opportunities coexist in US stocks, and the light of day will be seen after the interest rate hike is implemented. After missing the point of this round of interest rate hikes, US stock valuations are under pressure in the short term regardless of whether the Fed raises interest rates in September or not. However, in the medium to long term, the implementation of interest rate hikes is expected to release valuation suppression, compounding the positive attitude of the “Productivity and Employment Task Force” on AI, and the AI narrative of US stocks is expected to continue for a long time. On July 29, the FOMC remained on hold for the fifth time in a row. The three voting committees voted to raise interest rates by 25 bps, and differences within the Federal Reserve were made public. The market showed a fragmented reaction of “short-end pigeons and long-end eagles”. The rising inflation expectations suppressed the US dollar and provided a window for Japan's Ministry of Finance to interfere in the foreign exchange market. The high growth rate of the CSP cloud business mitigated to a certain extent concerns about the sustainability of AI's triple capital expenditure. Short-term interest rate sensitive industries, high valuations and low growth sectors, and small-cap stocks are under pressure, and the next liquidity expectations turn to the Jackson Hole conference in late August or the September interest rate meeting.