High Policy Rates Won't Derail U.S. Economy Driven by Rate-Insensitive AI Capex Cycle -- Market Talk
Dow Jones2026/10/07 06:330632 GMT - Higher policy rates won't derail a U.S. economy driven by a largely rate-insensitive artificial-intelligence capex cycle, says Sylvia Sheng, multi asset solutions lead portfolio manager at J.P. Morgan Asset Management. Financial conditions also remain supportive, with credit spreads still tight and corporate fundamentals remaining healthy, she adds. J.P. Morgan's constructive stance on equities is underpinned by solid nominal growth, low recession risk and a sustained AI capex earnings cycle, she adds. The U.S. remains the asset manager's core overweight as it offers the broadest and most durable exposure to the AI capex and adoption cycle, while earnings momentum has started to broaden beyond the initial AI beneficiaries, she says. J.P. Morgan continues to believe the AI capex build-out has ample room to run. (jiahui.huang@wsj.com; @ivy_jiahuihuang) (END) Dow Jones Newswires October 07, 2026 02:33 ET (06:33 GMT)
0632 GMT - Higher policy rates won't derail a U.S. economy driven by a largely rate-insensitive artificial-intelligence capex cycle, says Sylvia Sheng, multi asset solutions lead portfolio manager at J.P. Morgan Asset Management. Financial conditions also remain supportive, with credit spreads still tight and corporate fundamentals remaining healthy, she adds. J.P. Morgan's constructive stance on equities is underpinned by solid nominal growth, low recession risk and a sustained AI capex earnings cycle, she adds. The U.S. remains the asset manager's core overweight as it offers the broadest and most durable exposure to the AI capex and adoption cycle, while earnings momentum has started to broaden beyond the initial AI beneficiaries, she says. J.P. Morgan continues to believe the AI capex build-out has ample room to run. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
October 07, 2026 02:33 ET (06:33 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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