AI Disappointment and Rising Yields Prompt Research Firm to Cut US Stocks
MacroResearchBoard warns that AI disappointment and rising bond yields could pressure US stocks over the next 12 months, prompting a defensive stance.
A research firm is advising clients to reduce exposure to U.S. stocks, citing the dual headwinds of a potential artificial intelligence disappointment and rising bond yields. MacroResearchBoard issued the warning in a note to clients, arguing that the current market environment poses significant risks over the next 12 months.
The firm's caution centers on two key factors. First, the high expectations surrounding AI may not materialize as quickly as priced in, leading to a correction in tech-heavy indices. Second, the persistent rise in Treasury yields is making fixed income more attractive relative to equities, a dynamic that historically pressures stock valuations. For traders monitoring live stock prices and charts on NowPrice, the S&P 500's recent performance reflects growing uncertainty, with defensive sectors gaining favor.
Looking ahead, investors should watch for AI-related earnings reports and guidance from major tech companies, as any shortfall could trigger broader sell-offs. Additionally, the trajectory of the 10-year Treasury yield remains critical; if it breaches key resistance levels, the rotation out of growth stocks may accelerate. MacroResearchBoard's defensive tilt suggests a preference for sectors like utilities and healthcare, which tend to be less sensitive to rate changes and economic cycles.