2 1 Shi Ji Jing Ji Bao Dao·2025-10-11 03:26Market Overview - The U.S. stock market experienced a significant downturn, with the S&P 500 dropping nearly 2.7% and the Nasdaq 100 retreating about 3.5% on October 10, 2023, driven by a shift in global assets and increased risk aversion [1] - Major commodities such as Bitcoin, copper, wheat, and cotton also saw declines, while the VIX volatility index surged above 20, indicating heightened market uncertainty [1] Investment Sentiment - Analysts have warned of risks in the U.S. stock market due to overbought conditions, momentum divergence, and crowded positions, which could trigger larger pullbacks [2] - Despite the recent downturn, capital liquidity remains strong, with significant inflows into global equity funds and bond funds, suggesting potential for recovery if policy noise subsides and corporate earnings validate AI investments [2] Sector Focus - The semiconductor, software, and major tech stocks (including Nvidia, Microsoft, Palantir, Meta, Alphabet, and Amazon) are highlighted as preferred sectors for investment, with expectations of over 7% upside for tech stocks by year-end [2] - The ongoing demand for computational power, as evidenced by OpenAI's investments in Nvidia and AMD, indicates sustained growth potential in these sectors [2] Key Market Drivers - Future market direction will hinge on clearer tax policies and updates on AI investment returns and order visibility from leading tech companies [3] - If tax conditions do not worsen and earnings reports meet expectations, the market may recover along fundamental lines; otherwise, earnings assumptions and valuations may need to be adjusted [3]