Vincenzo Vedda, Global Chief Investment Officer at DWS, stated that in the bond market, short- and long-term sovereign bond prices in both the US and Eurozone are expected to rise, leading to lower yields. Due to weak recent US labor market data, the Federal Reserve may cut interest rates earlier than anticipated. However, it is still premature to conclude that US Treasuries have lost their appeal to international investors. As for the Eurozone, potential escalation of conflicts between the US and Russia, along with persistent uncertainties surrounding tariffs and trade disputes, could prompt the European Central Bank to further reduce interest rates.

Vedda described the current market sentiment as "cautiously optimistic in a high-risk era." He noted that while US stock valuations remain high, this year's "market leaders" are more evenly distributed compared to previous years, when the "Magnificent Seven" dominated. This balance is undoubtedly beneficial for the market.

Nevertheless, several concerns cannot be overlooked. Fiscal stimulus measures initially expected by the market have not materialized as anticipated, and public debt prospects are increasingly viewed as an economic burden. Additionally, apart from the technology and financial sectors, earnings performance of other S&P 500 constituent companies may disappoint. Currently elevated valuations of stocks and corporate bonds imply extremely low market tolerance for negative news, and asset prices could plummet rapidly in response to adverse developments.