Amid apparently resilient headline markets, this market flash from Edmond de Rothschild Asset Management highlights intensifying internal stress driven by AI-related capital fears and abrupt sector rotation.
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Technology—especially software—has borne the brunt of investor reassessment as soaring AI capex and competitive pressure trigger sharp valuation resets.
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Kevin Warsh’s appointment as Fed chair reinforces uncertainty around future liquidity support, even as rate cuts remain on the table to sustain growth.
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Europe shows policy tension beneath calm messaging, with euro strength tightening financial conditions despite below-target inflation.
Are markets underestimating the fragility beneath the surface calm? The full note examines where pressure points may next emerge.
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