Fidelity International: End of Rate Hike Cycle, Short-Term Bullish on US Stocks

Fidelity International Asia ex Japan Investment Strategy Director Jian Liheng believes that the US interest rate hike cycle seems to be coming to an end, but the pace of inflation decline is limited. It is difficult to cut interest rates in the short term, and it is expected that government bond yields will remain relatively high for a long time. In addition, the sustained high inflation has tightened US financial liquidity and made funding tight, which may lead to another increase in policy interest rates. He believes that an immediate recession is not necessarily imminent, but there are still related risks until next year. He said that US stocks have seen an upward trend in the first half of the year, driven by the artificial intelligence theme of technology and internet stocks.