Haitong International chief economist Zhang Yidong said on July 8 that late‑June
Fed commentary lifted rate‑hike expectations and strengthened the dollar, while
end‑1H portfolio rebalancing and Meta’s compute announcement sparked demand
worries — together triggering a sharp early‑July selloff in global AI/tech
stocks. He said the correction has not yet fully run and needs time to de‑risk:
markets have not fully priced in a stronger dollar, sticky inflation and tighter
Fed policy, and micro‑liquidity strains — overcrowded AI positioning and funding
pressure on AI equities and credit — require time to unwind. After an initial
large decline, some pressure from the dollar, oil/inflation and micro crowding
has been partly relieved but not digested; Zhang expects the AI move to shift
from a plunge to a choppy, differentiated downtrend with short‑term strength in
consumer and high‑dividend assets, and a potential renewed AI uptrend once
pressures ease further.
