Global equity markets faced pressure as investors took profits from the semiconductor rally amid higher-than-expected US job growth. UBS maintains a constructive outlook, viewing the pullback as a buying opportunity given resilient AI fundamentals.
Key Takeaways
- 1.Equities declined due to tech/semiconductor profit-taking, but fundamentals remain strong for an AI-driven rally.
- 2.The Fed is unlikely to raise rates further as wage growth slows, despite strong June labor market data.
- 3.European growth forecasts are cut to 0.8% due to inflationary pressure, yet select opportunities remain in structural innovation.
Table of Contents
- From Circle One
- Thought of the day
- What to watch: 8 June
- What do we think?
- How to invest?
- Caught our attention
- Market update
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Authors
Mark HaefeleDavid Lefkowitz
Securities
S&P 500Brent Crude
Themes
AI Supply Chain
Regions
Asia PacificGermany