Capital Economics: US stock market unlikely to return to October highs in the short term

BlockBeats news, November 6 - Joe Maher, a market economist at Capital Economics, said in a report that even if market concerns about the U.S. political outlook ultimately prove excessive and stocks rebound in the short term, U.S. equities may still struggle to return to their early-October highs in the near term.

He noted that the trigger for the overnight market selloff appeared to be investor concerns that Democrats, whether at the congressional level or at the state level, may seek to regulate the artificial intelligence industry and restrict data center construction.

Maher said market sentiment toward the AI trade had already shown signs of fragility, and U.S. stocks had also displayed many typical late-cycle characteristics. Therefore, this event could become a trigger driving a longer-lasting ebb in the AI stock boom.