US stocks

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U.S. stock index futures fluctuated slightly before the market, popular Chinese concept stocks generally fell, and JD.com and Pinduoduo fell more than 2%. JPMorgan expects the CPI to drop to 2% and recommends continuing to hold US stocks.

Popular Chinese concept stocks generally fell. JD.com, Pinduoduo, Baidu, and NetEase fell by more than 2%, and Li Auto, Bilibili, and Alibaba fell by more than 1%.

Morgan Stanley (Morgan Stanley) believes that Alibaba's recovery is underway, but its development trajectory is uncertain due to the persistent weakness in the macro environment.

The bank believes that a benign core investment cycle centered on returns and reduced losses in other areas will jointly support earnings growth prospects, give Alibaba US stocks (US: BABA) a target price of $150, maintain an "overweight" rating, and reiterate Preferred stock for this sector.

In the first quarter, CMR (customer management) grew by 10% year-on-year, exceeding Morgan Stanley's estimate and consensus of 4%.

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David Kelly, chief global strategist at JPMorgan, said: "There is some degree of disinflation in the US. With inflation approaching 2 percent by the end of next year, stocks will reward patient investors and bonds will provide solid capital gains. "The bond market is better priced overall than it has been for years, and I think there's a one-time capital gain in the bond market as rates come down. And there's still better long-term capital gain in the stock market."

In addition, the market currently generally expects that the Federal Reserve is unlikely to raise interest rates in the rest of this year, and will start a "journey of interest rate cuts" next year.

That's why he's so sure inflation will drop to 2% on its own, with or without the Fed's help.