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European stock markets hit a one-month low, weighed down by economic concerns.
European stock markets fell on Monday, as concerns grew over Germany's spending plans, USA economic growth, and the impact of tariffs, with Technology stocks leading the decline and heavyweight stock Novo-Nordisk A/S dropping in price. The Stoxx Europe 600 Index closed down 1.3%, marking its lowest level since February 10. Technology stocks were the worst-performing Sector, with the Stoxx Technology Index nearly reversing all of its gains this year. Bank stocks, which are expected to lead the rebound in 2025, also fell. USA President Trump stated that the economy is facing a 'transformative period', leading to a decline in the USA stock market and a drop in the Magnificent 7. The so-called high momentum stocks particularly stood out in the day's Trade. A basket of Stocks from UBS Group fell by 3.
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Has AI Trade in the US stock market come to an end? Goldman Sachs voiced that investors will return, and the "third phase of AI Trade" is the most worthy of attention.
Goldman Sachs believes that ongoing technological advancements and profit growth will refocus investors on AI stocks, remaining bullish on their long-term prospects. It is expected that as corporate AI capital expenditure growth slows and AI costs continue to decline, investor attention will shift from the infrastructure of the second stage to the revenue-generating applications of the third stage, with a bullish outlook on companies such as Palantir, Cloudflare, SentinelOne, and GitLab.
Goldman Sachs Expects the AI Trade to Continue Sooner Rather Than Later
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