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

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Mars Finance News, June 16 — The easing of tensions in the Middle East has given investors new reasons to focus on other sectors, beyond the AI trading that has dominated market narratives for most of this year. Traders like Lee Coppersmith of Goldman Sachs wrote in a report to clients that investors are beginning to realize there may be some undervalued cyclical stocks that are not closely related to AI. Given that the AI hype has cooled down, investors are positioning themselves to catch up with such stocks. "As the war ends, the market will skip the upcoming inflation data and gradually remove rate hike expectations, allowing us to shift back to betting on rate cuts," said Joe Gilbert, portfolio manager at Integrity Asset Management. "This will benefit small-cap companies, cyclical stocks, and bonds."
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