US stock futures rebound; institutions warn that sector rotation and high-volatility conditions may persist.

November 6 - U.S. stock index futures rebounded after severe volatility, following the Democrats' midterm election victory and full control of Congress, which led to a sharp sell-off in the U.S. stock spot market on the previous trading day. Daniel Murray, Deputy Chief Investment Officer at EFG Asset Management, stated that the prudent approach now is to prepare for continued sector rotation and sustained high market volatility. He advised investors to objectively review portfolio allocations based on fundamentals and avoid falling into market sentiment and panic.

Stephan Kemper, Chief Investment Officer at BNP Paribas Wealth Management Germany, said the core question the market needs to answer now is whether tech stocks have become investable assets or a value trap. He noted that tech stock valuations are currently well below long-term averages, while earnings expectations have not yet seen significant downward revisions, which supports the former judgment.

Greg Boland, Market Strategist at Moomoo New Zealand, said the current rebound looks more like dip buying and short covering rather than a fundamental shift in market sentiment. The more important question remains whether the massive investments in AI infrastructure can truly translate into the earnings and cash flow that investors had previously anticipated.