Brokerage Morning Meeting Highlights | Inflation rebound supports Fed rate hike, but timing remains uncertain.

Yesterday, the market weakened collectively, with both the ChiNext and STAR 50 indices falling more than 3%, and the Shenzhen Component Index dropping nearly 2%. The combined turnover of the Shanghai and Shenzhen stock markets was 1.41 trillion yuan. On the board, sectors such as media, PCB, and coal showed active performance. On the decline side, sectors such as wind power equipment and automobiles experienced volatile adjustments. As of the close, the Shanghai Composite Index fell 0.88%, the Shenzhen Component Index fell 1.97%, the ChiNext Index fell 3.1%, and the STAR 50 Index fell 3.29%. CICC believes that the inflation rebound supports Fed rate hikes, but the timing remains uncertain; CITIC SEC believes that the bottom of gold prices may be raised, and the gold sector is expected to lead; China Securities Co.,Ltd. believes that AI4S is approaching the critical point of industrialization. CICC: Inflation rebound supports Fed rate hikes, but timing remains uncertain US September CPI rose 0.6% month-on-month on a seasonally adjusted basis and 3.7% year-on-year; core CPI rose 0.3% month-on-month and 2.6% year-on-year, both rebounding from the previous month and exceeding market expectations. The sources of price increases were relatively broad, with energy, core goods, and rent all contributing. High oil prices exacerbated energy inflation, consumer resilience and AI investment demand supported commodity prices, and rent stickiness constrained the decline in services inflation. In terms of monetary policy, the inflation rebound strengthened the necessity for the Fed to continue raising rates, but due to the recent rise in US Treasury yields and the strengthening of the dollar, financial conditions have already tightened partially, and the Fed may remain patient. It is expected that rate hikes may still be paused in October, with action again in December. However, a slower pace of rate hikes does not mean a shift to accommodative monetary policy. Over the next year, the Fed may still maintain a relatively tight policy stance. CITIC SEC: The bottom of gold prices may be raised, and the gold sector is expected to lead Since September, better-than-expected ETF and central bank buying have provided a relatively sufficient hedge against liquidity selling on the futures side. Over the past two weeks, gold prices have shown signs of stabilizing and are expected to rise from the bottom at the end of June. Similar to how the gold sector rebounded ahead of gold prices in July, if gold prices stabilize now, it will become an important signal for a rebound in the gold sector. Pay attention to rebound opportunities in the gold sector. China Securities Co.,Ltd.: AI4S is approaching the critical point of industrialization The AI pharmaceutical industry chain has evolved into a networked empowerment system with platforms and technology middle offices as the core and deep collaboration across upstream, midstream, and downstream, showing a development trend in which multiple business models are compatible and advancing together. AI4S is moving from a competition in model capabilities to the critical point of industrialization, with a fourfold resonance of technology, industry, demand, and policy, and the value anchor is upgrading from model capabilities to scientific research productivity, data assets, and systematic biological design. This article is reprinted from "Cailian Press", GMTEight editor: Xu Wenqiang.