Hua Xiang, a senior analyst at Yongan Futures Stock Index, believes that at present, A-shares are maintaining a trend of contraction and fluctuation, and there is insufficient desire for incremental capital to enter the market. The market is dominated by stock games and structural position adjustments, and no clear trend has yet formed. “The AI and semiconductor sectors are still the main forces driving the market index. If the market wants to break the volatile impasse, the main line of technology needs to make directional choices. The shortfall of the Federal Reserve's interest rate hike has been realized. Combined with Nvidia CEO Hwang In-hoon's optimistic statement on chip sales in 2026, the US semiconductor sector has strengthened, boosting the sentiment of A-share related sectors in the short term.” he said. However, Huaxiang warned that in the future, the market needs to focus on two major contradictions: the first is the game between AI industry supervision and capital expenditure expectations, which will affect the mid-term valuation center. Second, the US-Iran conflict is progressing. Next week's talks between Gulf leaders may affect crude oil prices, which in turn will affect the pace of the Federal Reserve's subsequent rate hikes. Furthermore, the rise in 10-year US Treasury yields continues to constrain global stock market valuations.

Hua Xiang, a senior analyst at Yongan Futures Stock Index, believes that at present, A-shares are maintaining a trend of contraction and fluctuation, and there is insufficient desire for incremental capital to enter the market. The market is dominated by stock games and structural position adjustments, and no clear trend has yet formed. “The AI and semiconductor sectors are still the main forces driving the market index. If the market wants to break the volatile impasse, the main line of technology needs to make directional choices. The shortfall of the Federal Reserve's interest rate hike has been realized. Combined with Nvidia CEO Hwang In-hoon's optimistic statement on chip sales in 2026, the US semiconductor sector has strengthened, boosting the sentiment of A-share related sectors in the short term.” he said. However, Huaxiang warned that in the future, the market needs to focus on two major contradictions: the first is the game between AI industry supervision and capital expenditure expectations, which will affect the mid-term valuation center. Second, the US-Iran conflict is progressing. Next week's talks between Gulf leaders may affect crude oil prices, which in turn will affect the pace of the Federal Reserve's subsequent rate hikes. Furthermore, the rise in 10-year US Treasury yields continues to constrain global stock market valuations.