📊 AI Valuations Capping The Upside?

Good Morning Investors,

Rising expectations for interest rate cuts and a noticeable improvement in investor sentiment helped direct flows toward smaller companies, allowing the Russell to lead major peers.

Miners and other resource oriented companies benefited from firmer metals prices, while a series of policy updates and new activity in the chip industry lifted interest in semiconductor and industrial names.

The backdrop also includes growing merger and acquisition speculation and early indications of renewed interest in new listings, although elevated leverage and questions around valuation in areas tied to artificial intelligence argue for selectivity. The coming weeks will likely reveal how much of this momentum can carry through to year end.

Matthias Schneider
Editor at Analytica Investor