CITIC Securities: The Big and Beautiful Act is bad news for US medical and new energy stocks

Odaily News According to a research report by CITIC Securities, Trump officially signed the Big and Beautiful Act (OBBB), which covers a broad political agenda for conservatives and will increase the government deficit by a cumulative $3.4 trillion by 2034. Regarding the U.S. bond market, the bill further increases the future debt pressure on the United States, which is expected to lead to an upward trend in the central long-term U.S. bond interest rate. Regarding the U.S. stock market, the revision of U.S. stock performance expectations has stabilized and rebounded since late June. The OBBB Act is bearish for U.S. medical and new energy. You can pay attention to the technology industry with a better match between valuation and performance, the manufacturing industry that benefits from the re-industrialization process and favorable policies, mid- and upper-stream resource products, and the nuclear power industry. Regarding the U.S. stock technology sector, the bill is good for technology giants, AI, semiconductor equipment, etc. Regarding the energy industry, the bill has impacted new energy, but the energy storage policy has eased; the bill actively promotes the revival of traditional energy, and you can pay attention to the development of industries such as nuclear power. (Jinshi)