The strong performance of the manufacturing sector and optimistic outlook on AI are powering the stock market.

In January, U.S. manufacturing indicators exceeded analyst expectations, marking strong performance, and on Monday, the major three U.S. stock indices all rose across the board. Market participants are increasingly optimistic about the performance of AI-related stocks during the upcoming corporate earnings season.

Economic Data Stimulates Market Buying Sentiment

The unexpectedly robust U.S. manufacturing activity has further boosted expectations for an economic recovery in the world’s largest economy. This positive development has become a key factor driving stock prices higher and has stimulated institutional investors’ buying interest.

Optimistic Outlook for AI Stocks Continues

According to reports from Ming Pao, the investor community remains optimistic about upcoming earnings reports from AI-related companies. This market sentiment is fueling buying pressure across the entire technology sector.

Financial and Fiscal Environment Supports Investment Decisions

Alexandra Ivanova, fund manager of the Invesco Global Income Fund, points out that current monetary and fiscal policies are favorable for both the stock and bond markets this year. Such an optimistic policy environment plays a crucial role in underpinning investors’ active buying.

Promoting Regional Diversification with a Balanced Investment Strategy

Alexandra Ivanova advocates for a balanced allocation strategy toward European and UK equities, which have relatively positive outlooks, and recommends regional diversification. This optimistic yet realistic approach is recognized as an effective method to enhance resilience against market volatility.