|
By Zaheer Anwari – Co-Founder and CEO at The Revacy Fund
US equity futures remained relatively volatile on Thursday and continued to trade in a range. Tensions in the Middle East remain a key risk factor for stock markets, weighing on investor sentiment and limiting appetite for risk assets. Additional uncertainty comes from trade policy developments, with Treasury Secretary Scott Bessent indicating that a proposed 15% global tariff could come into effect later this week. Such measures could reignite concerns over global trade frictions and weigh on equities.
However, the market could continue to find some support from AI developments. In pre-market trading, Broadcom surged, supported by strong growth in its AI segment. The company reported that AI-related revenue more than doubled year-on-year and projected that its AI chip sales could exceed USD100 billion by 2027.
At the macro level, attention is turning toward the upcoming US nonfarm payrolls report. Following a string of resilient economic indicators, markets are now pricing only one rate cut in 2026. Any surprise in employment data could therefore shift expectations and influence the near-term direction of equities.
From a portfolio perspective, we continue to maintain diversified exposure across the major sectors. With the indices remaining within tight ranges, we are monitoring for a breakout and a confirmed continuation of the broader bull trend, which could present additional buying opportunities.
|
