According to CoinWorld news, Zhang Yidong, Chief Economist at Haitong International, stated on July 8 that after the Federal Reserve's June interest rate meeting, expectations of a rate hike intensified and the U.S. dollar continued to strengthen, leading to significant volatility and adjustments in global AI tech stocks in early July.
He believes that the adjustment time for the AI stock trend is not sufficient yet, and it still needs time to exchange for space to release risks. Currently, major global stock markets have not fully accounted for the impact of a strong U.S. dollar, high inflation stickiness, and the effects of the Federal Reserve's rate hike expectations. The overcrowded trading situation of AI stocks and financing pressure also need time to ease.
Zhang Yidong pointed out that after the sharp short-term decline, the three disruptive risks of the U.S. dollar, oil price inflation, and micro-level overcrowding have been initially released. Going forward, the AI stock trend is expected to shift from a sharp decline to a seesaw battle and a differentiated slow decline, while safe-haven assets such as consumer and dividend assets gain short-term strength. However, after further pressure is released, the AI stock trend is still expected to resume its upward trajectory.