Investors remain optimistic about the S&P 500, with a median estimate predicting a rise to 6,500 by year-end. While some view the recent selloff as overblown, others are shifting focus to US value stocks as a potential safe haven. Major tech firms, including Meta and Microsoft, continue to express confidence in their AI strategies, despite challenges such as capital expenditure concerns and data center capacity. The survey suggests that Trump's tariff threats and policy decisions will have a more episodic impact on the market than AI developments.
Key takeaways:
- DeepSeek's emergence caused market turmoil, but 88% of investors believe it will have little impact on the Magnificent Seven stocks.
- President Donald Trump's policies are seen as a larger driver of equity volatility this year, according to 59% of survey participants.
- Major tech firms remain confident in their AI competitiveness, despite recent market selloffs.
- US value stocks are emerging as a preferred alternative investment, with 39% of respondents favoring them over Treasuries and the US dollar.