---
title: "The market is expected to continue rising in the second quarter, and institutions suggest focusing on sub-sectors such as AI computing power and semiconductors"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/281839466.md"
description: "Against the backdrop of geopolitical conflicts in the Middle East and uncertainty in international oil prices, market short-term risk appetite is under pressure, but the medium to long-term upward foundation remains solid. It is expected that the market will continue to rise in the second quarter, with a recommendation to focus on industries such as AI computing power and semiconductors. China Merchants Securities pointed out that the acceleration of U.S. military mobilization may lead to an escalation of the U.S.-Israel-Iran conflict, and rising oil prices will exacerbate global economic stagflation concerns. Guosen Securities believes that with the easing of geopolitical tensions and domestic policy support, the market bull market background remains solid, and the industry structure will become more balanced"
datetime: "2026-04-07T06:39:15.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/281839466.md)
  - [en](https://longbridge.com/en/news/281839466.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/281839466.md)
---

# The market is expected to continue rising in the second quarter, and institutions suggest focusing on sub-sectors such as AI computing power and semiconductors

According to China Securities Journal, against the backdrop of ongoing geopolitical conflicts in the Middle East and uncertainties in international oil prices, relevant assessments indicate that the short-term uncertainties of the US-Israel-Iran conflict continue to suppress market risk appetite, but have not shaken the foundation for medium- to long-term upward trends. As a series of positive signals gradually emerge, the market is expected to continue its upward trajectory in the second quarter.

In terms of future allocations, it is recommended to continue to position in industries supported by policies and those trending upwards during dips in the short term. Growth sectors remain the strongest mainline in this round of market trends, with sub-sectors such as AI computing power, semiconductors, storage, and innovative pharmaceuticals worthy of attention.

According to a research report from China Merchants Securities, the US is currently accelerating military mobilization. After the "USS George H.W. Bush" carrier strike group completes its deployment in mid-April, the possibility of ground operations significantly increases. There is a risk of an unexpected escalation in the US-Israel-Iran conflict, and further upward pressure on oil prices will intensify market concerns about global economic stagflation. If the US military launches a ground offensive in mid to late April, whether due to casualties exceeding expectations or surging oil prices triggering a deep correction in global markets, relevant governments may be forced to shift towards easing strategies, and the market may experience a typical reversal of a dilemma.

Guosen Securities' research report mentions that looking ahead to the second quarter, the bullish market backdrop remains solid. With the easing of geopolitical disturbances and the emergence of positive signals from domestic policies, the market will continue its upward trend, and the industry structure is also expected to become more balanced.

Disclaimer: The market carries risks, and investment should be cautious. This article is generated by AI based on third-party data and is for reference only, not constituting personal investment advice

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