CITIC Securities: In the short term, regardless of whether the Federal Reserve raises interest rates in September, the valuation of U.S. stocks will face pressure.

CITIC Securities' research report states that the US stock market is currently facing both short-term uncertainties and long-term opportunities, with glimmers of hope emerging following the conclusion of interest rate hikes. After missing the current interest rate hike timing, US stock valuations are under pressure regardless of whether the Federal Reserve raises rates in September. However, in the medium to long term, the conclusion of interest rate hikes is expected to alleviate valuation suppression. Coupled with the "Productivity and Employment Working Group's" positive stance on AI, the narrative around AI in the US stock market is likely to continue in the long run. On July 29, the FOMC held its position steady for the fifth consecutive time, with three voting members supporting a 25 bps rate hike, publicly revealing divisions within the Federal Reserve. The market reacted in a fragmented manner, exhibiting "short-end dovishness and long-end hawkishness." Rising inflation expectations have pressured the dollar and provided a window for intervention in the exchange market by the Japanese Ministry of Finance. The rapid growth of CSP cloud services has somewhat alleviated concerns about the sustainability of the triple capital expenditure for AI. Short-term interest rate-sensitive sectors, high-valuation low-growth segments, and small-cap stocks are under pressure, and the next anticipated shift in liquidity expectations will focus on the Jackson Hole conference at the end of August or the September policy meeting.