Goldman Sachs Trader: Easing Middle East tensions shift U.S. stock investors' focus to sectors beyond AI

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BlockBeats News, June 16 — The easing of tensions in the Middle East has given investors a new reason to focus on other sectors, not just the AI trading that has dominated market narratives for most of this year.

Goldman Sachs Group's Lee Coppersmith and other traders wrote in a report to clients that investors are beginning to realize that there may be some cyclical stocks that are undervalued and not closely related to AI. Given that the AI hype has cooled off, investors are positioning themselves for a potential catch-up in such stocks. "As the war ends, the market will skip over the upcoming inflation data and gradually remove rate hike expectations, allowing us to refocus on betting for rate cuts."

Integrity Asset Management Portfolio Manager Joe Gilbert said, "This will benefit small-cap companies, cyclical stocks, and bonds."

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