AI Momentum Drives Stocks, US Trade Representative Jamieson Greer | Bloomberg Daybreak: Asia Edition

Why It Matters

AI‑driven retail buying is pushing U.S. markets to new highs, but looming yield hikes and post‑summit trade dynamics create short‑term risk and long‑term opportunities in Asia.

Key Takeaways

• US equities hit record highs fueled by AI-driven retail buying.
• Goldman Sachs reports retail trading volumes up 28% since mid‑April.
• Strategist warns AI capex bubble in inflation stage, may collapse later.
• Asian tech seen as more sustainable, likely long‑term outperformers.
• Post‑summit, US yields and dollar expected to rise, prompting risk aversion.

Summary

The Bloomberg Daybreak Asia podcast highlighted how AI‑driven enthusiasm propelled U.S. equities to fresh all‑time highs, while President Trump’s meeting with Xi in Beijing set the stage for new trade talks.

Goldman Sachs data shows retail trading volumes have jumped 28% since mid‑April, fueling the rally. Strategist Mark Cudmore described the AI capex surge as an “inflation‑stage bubble” that may eventually collapse, but noted that the U.S. economy remains K‑shaped with high‑income consumption supporting growth. He contrasted this with Asian tech, which he believes has lower valuations and a more sustainable trajectory.

Cudmore warned that tail‑risk events—such as Taiwan tensions—could spark short‑term volatility, and that after the Trump‑Xi summit markets may face a bout of risk aversion. US Trade Representative Jameson Greer outlined forthcoming agreements, including a multi‑billion‑dollar purchase package and a 25 million‑ton soybean deal, signaling a gradual rebalancing of the U.S.–China trade deficit.

For investors, the key takeaways are heightened short‑term caution as yields and the dollar rise, and a longer‑term bias toward Asian equities that appear less over‑valued. The interplay of AI spending, retail momentum, and evolving trade dynamics will shape market direction in the weeks ahead.

Original Description

AI optimism, strong corporate earnings and a resilient economy have powered stocks to successive record highs, driven by bets that spending on artificial intelligence will continue to fuel growth. The rally has also overshadowed mounting concerns that crude oil above $100 a barrel could reignite inflation and cloud the outlook for central banks and the global economy. We speak to Mark Cudmore, Global Leader of the Markets Live Team at Bloomberg News.

Plus - Jamieson Greer, Trade Representative of the United States, signaled cautious optimism that US-China trade relations are stabilizing, with progress on agriculture purchases and rare earth supplies, though tariffs and supply chain issues remain. He speaks exclusively to Bloomberg's Annmarie Hordern, on the sidelines of the US-China summit in Beijing on "Bloomberg: The Asia Trade".

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Bloomberg Daybreak Asia delivers today's top stories, with context, in just 15 minutes. Get informed from Bloomberg's 2,700 journalists and analysts in 120 countries.

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