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

By Public Technologies
  • 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.


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