US Stocks to Continue Lagging Peers: 3-Minutes MLIV

Group 1 - The U.S. is experiencing pronounced air displacement effects that are outweighing potential benefits, leading to a challenging environment for investors [2][7] - Software stocks are currently at the center of market volatility, with American Express seeing a decline of over 6% [3] - There is significant policy uncertainty in the U.S. market, with concerns about tariff impacts and their composition, contributing to a lower close for the Equal-weight S&P and Russell indices [6][7] Group 2 - In Japan, the yen and job markets are reacting to reports of the Prime Minister's apprehension regarding further rate hikes from the Bank of Japan (BOJ), indicating a serious concern for market stability [8][9] - Soft Japanese GDP data at the end of Q4 suggests that more stimulus may be necessary, contradicting the narrative of fiscal responsibility post-election [9][10] - Geopolitical tensions between Japan and China could lead to a significant increase in the dollar-yen exchange rate, with potential moves towards 160 yen per dollar [11]