Perpetual sees further US tech stock declines as AI investment costs rise

• Perpetual expects further US technology share declines as higher capital costs constrain AI investment spending.
• Intense competition should sustain substantial AI investment, supporting US growth while adding inflationary pressure.
• Persistent inflation points to further Federal Reserve and RBA tightening, with larger increases likely in the US.
• Australian markets price an 80% chance of one further rate increase, which the analysis considers insufficient to restore inflation to target.
• Longer-term bond yields should trade within a range, with current pricing consistent with a 5-5.25% peak federal funds rate.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Perpetual Limited published the original content used to generate this news brief on October 19, 2026, and is solely responsible for the information contained therein.