CITIC Securities: The "Big and Beautiful" Act Poses Risks to U.S. Healthcare and New Energy Stocks

Odaily Planet Daily reports: According to a research report by CITIC Securities, Trump has officially signed the "Outsized, Beautiful, and Bold" Act (OBBB), which covers a broad conservative political agenda and is expected to increase the cumulative government deficit by $3.4 trillion by 2034. Regarding the US Treasury market, the act further intensifies future US debt pressures, which is expected to push up the medium- to long-term yields on long-term US Treasuries. As for the US stock market, since late June, earnings expectations for US stocks have stabilized and rebounded. The OBBB Act is negative for US healthcare and new energy stocks, while sectors with more aligned valuations and earnings, such as technology, manufacturing benefiting from reindustrialization and policy support, upstream and midstream resources, and the nuclear power industry, are worth attention. In the US tech sector, the act is favorable for tech giants, AI, and semiconductor equipment. Regarding the energy industry, the act impacts new energy, though energy storage policies have been somewhat eased; it actively promotes the revival of traditional energy, making sectors like nuclear power worth watching. (Jin10)