Market Overview - The recent economic data from the US has shown overall strength, leading to a reduction in interest rate cut expectations and an increase in short-term bond yields [1] - Major stock indices have risen for the second consecutive trading day, with small-cap indices reaching new highs and outperforming the S&P 500 for 15 consecutive days [1] - Despite easing geopolitical concerns, gold prices have increased by 1.8% to surpass $4900, while silver and platinum have shown even more aggressive gains, with silver rising by 4% and platinum by over 6.3% [1] Core Insights - The Q3 GDP final value has been revised up to 4.4%, with personal consumption remaining resilient; PCE in November increased by 0.2% month-on-month and 2.8% year-on-year, indicating no signs of renewed inflation [3] - Initial jobless claims were reported at 200,000, lower than market expectations and still within a low range, suggesting the economy is performing slightly better than anticipated [3] - The report indicates that the market no longer expects rapid and significant interest rate cuts this year, shifting the trading logic from "good is bad" to a more stable outlook [3] Sector Focus - Upcoming earnings reports from major tech companies such as Meta, Tesla, Microsoft, and Apple are critical, with a focus on their capital expenditure (CapEx) [3] - CapEx may expand due to rising prices in storage and hardware, but it fundamentally depends on the demand and commercialization prospects of AI applications; delays in commercialization could lead to lower-than-expected CapEx, affecting pricing power in storage and computing [3] - The market has shifted from extreme panic to a phase of upward volatility, with expectations of continued recovery in the short term; however, broader market fluctuations are likely due to ongoing geopolitical issues and the fragility of long-term US Treasury bonds [3] Investment Strategy - The report suggests continuing to allocate investments in energy, resources, the non-ferrous sector, semiconductors, and small-cap cyclical stocks, while using banks, consumer goods, and precious metals as defensive hedges against risks [3]