GK and monthly revision

Sticky inflation clouds rate outlook, but AI and earnings keep markets resilient: Santosh Rao

The recent AI-driven market rally is broadening beyond the technology sector, positively impacting healthcare, financials, and transportation, indicating economic resilience. Despite persistent inflationary pressures, strong corporate earnings are sustaining elevated equity valuations. Investors expect the US Federal Reserve to keep interest rates high for an extended period, which may strengthen the dollar and create challenges for commodities and emerging markets. Additionally, ongoing geopolitical tensions in the Middle East pose significant risks to market stability.