JPMorgan: EM benchmarks less rate-sensitive, favor AI and healthcare

• Higher bond yields and equities can coexist, as EM benchmarks are less rate-sensitive and focused on AI, services, and healthcare sectors.
• AI economics remain profitable, driven by hyperscalers' strong earnings and significant capital expenditure increases, creating a large demand-supply gap in hardware.
• Despite concerns about AI's impact on humanity and declining token pricing, token use cases have surged 10-20x, and there has been net job hiring globally.

JPMorgan's Rajiv Batra argues that higher bond yields and equities can coexist, particularly in emerging markets where benchmarks are less rate-sensitive and geared towards AI, services, and healthcare. He maintains a bullish stance on AI's profitability and growth, despite acknowledging regulatory and financing concerns, citing strong demand and continued job growth.