The J.P. Morgan Chase trading platform expects technology stocks to rebound, and market gains are no longer limited to a few giant stocks. The bank's US market intelligence team remains tactical and believes that although investors are beginning to select the AI circuit targets, the current round of falling technology stocks still nurtures short-term opportunities for recovery. The team led by Andrew Taylor wrote in a research report on Wednesday: “We don't recommend abandoning technology stock trading and playing for a round of tactical rebound.” The team tends to use a barbell strategy, matching technology stocks with cyclical stocks, and cyclical stocks have a higher allocation weight. Investors are evaluating the impact of the Democratic Party's control of Congress on the tech industry, particularly the prospects for AI infrastructure capital spending. Gina Hinojosa, the new governor of Texas, proposed to immediately suspend approval for the construction of new data centers until supporting regulations are implemented. This concern caused technology stocks to plummet overnight. The Nasdaq 100 index, which is dominated by technology stocks, rose 1.8% on the day. The J.P. Morgan Trading Desk believes that the market's concerns about Texas's policy shift may have been exaggerated: the US still has a large number of other states that can undertake data center projects, and the new regulations will not completely stop construction. However, the team did not give a clear bullish signal on AI trading. If investors want to increase their positions again, they also need to wait for multiple verification signals: full clarification of position sentiment, implementation of Yundachang's capital expenditure plans, improvement in semiconductor and storage companies' financial reports, and a recovery in capital market activity.
Zhitongcaijing · 5d ago
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The J.P. Morgan Chase trading platform expects technology stocks to rebound, and market gains are no longer limited to a few giant stocks. The bank's US market intelligence team remains tactical and believes that although investors are beginning to select the AI circuit targets, the current round of falling technology stocks still nurtures short-term opportunities for recovery. The team led by Andrew Taylor wrote in a research report on Wednesday: “We don't recommend abandoning technology stock trading and playing for a round of tactical rebound.” The team tends to use a barbell strategy, matching technology stocks with cyclical stocks, and cyclical stocks have a higher allocation weight. Investors are evaluating the impact of the Democratic Party's control of Congress on the tech industry, particularly the prospects for AI infrastructure capital spending. Gina Hinojosa, the new governor of Texas, proposed to immediately suspend approval for the construction of new data centers until supporting regulations are implemented. This concern caused technology stocks to plummet overnight. The Nasdaq 100 index, which is dominated by technology stocks, rose 1.8% on the day. The J.P. Morgan Trading Desk believes that the market's concerns about Texas's policy shift may have been exaggerated: the US still has a large number of other states that can undertake data center projects, and the new regulations will not completely stop construction. However, the team did not give a clear bullish signal on AI trading. If investors want to increase their positions again, they also need to wait for multiple verification signals: full clarification of position sentiment, implementation of Yundachang's capital expenditure plans, improvement in semiconductor and storage companies' financial reports, and a recovery in capital market activity.
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