H2 begins with bulls in charge
Global markets have entered the second half of the year with remarkable momentum despite months of geopolitical tensions, an energy shock and rising bond yields. AI remains the dominant investment theme, with semiconductor stocks continuing to lead the rally while Big Tech faces growing scrutiny over the returns on massive AI spending.
Falling oil prices are helping ease inflation fears just as Fed Chair Kevin Warsh reinforces the Federal Reserve's renewed focus on price stability. Higher yields could challenge equity valuations, but strong earnings expectations and abundant liquidity continue to support risk appetite.
Meanwhile, the US dollar is regaining strength...