US Stocks to Continue Lagging Peers: 3-Minutes MLIV

Bloomberg Markets and Finance | February 24, 2026 at 08:45 AM UTC
Bearish 90% Confidence
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Key Points

  • US market faces 'AI displacement effect' on software stocks and policy uncertainty from Trump's tariffs, leading to broad risk aversion.
  • Asian 'shovel and pick' chipmakers are seen as beneficiaries of the AI trend, suggesting a shift in investment focus.
  • Japan's Yen is weakening due to soft GDP and reports of the Prime Minister's apprehension about further BOJ rate hikes, potentially leading to USD-JPY reaching 160.

AI Summary

The discussion highlights a bearish outlook for US stocks due to AI displacement impacting software companies and ongoing tariff uncertainty. Investors are advised to look towards Asian chipmakers as beneficiaries of the AI trend. In Japan, concerns about the Prime Minister's apprehension regarding further BOJ rate hikes and soft GDP are undermining the Yen, with a potential move towards 160 against the dollar.

Model Analysis Breakdown

Model Sentiment Confidence
Gemini 2.5 Flash Bearish 90%
Consensus Bearish 90%