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BlockBeats reported that on July 7, The Kobeissi Letter published an article stating that it currently believes the S&P 500 Index is preparing to break above 8,000 points. The reason is that chip stocks have quietly become the new leading sector of this bull market. Although many of the "Magnificent Seven" US stocks have fallen more than 20% from their recent highs, semiconductor stocks have already taken over as the market leaders. Since the beginning of this year, 8 out of the 10 best-performing stocks in the S&P 500 index are from the chip industry. Despite the weakening of large-cap tech stocks that have led the market since 2022, the S&P 500 is currently only about 1% below its all-time high. This is the first time since 2022 that the market is rising under the leadership of sectors outside of the "Magnificent Seven", while the "Magnificent Seven" are trending in the opposite direction. It believes this rotation is positive, as the "Magnificent Seven" are preparing to take the lead again. As large-cap tech stocks start to regain leadership and semiconductors continue to outperform or even if they cool down, the S&P 500 is expected to rise above 8,000 points. Asset holders will continue to benefit.

Analysts have found that a downturn in the artificial intelligence (AI) market will pose significant risks to the economy. The report was prepared for U.S. Treasury Secretary Scott Besent and Federal Reserve Chairman Kevin Walsh. A spokesperson for the U.S. Department of the Treasury stated that the department’s official position is that artificial intelligence will “be a key driving force in America’s new golden age.” (NOTUS)

But so far, they have achieved nothing. JPMorgan strategists stated that this peace agreement helps set the backdrop for a "clear skies" scenario for the U.S. stock market. According to Jim Paulsen, a highly regarded veteran in the investment community, despite the double-digit decline in WTI crude prices, the U.S. stock market has yet to improve, which is consistent with historical experience. After analyzing data since 1970, Paulsen found that over the past 50 years, whenever oil prices surged, the S&P 500 index would decline after oil prices began to fall. Paulsen stated that the S&P 500 index would always experience "a period of sideways movement or a direct decline." As the damage caused by oil price shocks to the U.S. economy becomes increasingly apparent to investors, he expects the S&P 500 index to fall by over 10% this year. (Bloomberg)