Strategists at a major financial institution noted that as the cyclical environment improves, there are early signs the stock market rally is beginning to broaden beyond a handful of artificial intelligence stocks.
The team, led by Beta Mantai, stated that the technology sector continues to stand out in terms of earnings growth, earnings momentum, and valuation metrics. "Therefore, we view this broadening as an expansion of market participation, rather than a rotation of capital out of the technology/AI sector," they said.
The bank anticipates that continental Europe and Japan could be potential beneficiaries of this trend.
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