The S&P 500 is on track for its longest weekly win streak since 1985, driven by investor anticipation of May's nonfarm payroll report. In contrast, Asian markets, particularly South Korea's Kospi and Japan's Nikkei, have shown declines, indicating a potential shift in the AI boom.
Timothy Moe, Goldman Sachs' chief APAC equity strategist, emphasizes that memory stocks remain strong performers, while the defense sector's recent sell-off presents a buying opportunity due to improved fundamentals and attractive valuations.
Jean-Louis Nakamura from Vontobel expresses confidence in the ongoing AI boom, asserting that hyperscalers will maintain their capital expenditure plans over the next 12 to 18 months, which bodes well for chip manufacturers and memory producers. Additionally, he notes that select Chinese internet platforms have been undervalued and are positioned to benefit from AI monetization.
Roger Lee from Cavendish suggests that mid-cap stocks could provide value if oil prices decline, as this would alleviate inflationary pressures and positively influence interest rate expectations. He believes that mid-cap equities, particularly in the U.S., U.K., and Europe, are well-positioned to thrive under these conditions