Fed Minutes: Markets See Overall U.S. Economy as Remaining Resilient

According to a report by Jinse Finance, the Federal Reserve released the minutes of its July meeting, which noted that the recent rise in stock prices and narrowing credit spreads indicate that the market believes the overall U.S. economy remains resilient. However, financial markets appear to have begun differentiating companies based on the scale and quality of their earnings. The valuation of the S&P 500 index continues to exceed its long-term average, mainly due to optimistic expectations that large technology companies will benefit further from the application of artificial intelligence (AI). Nevertheless, although the valuation of small-cap indices has increased during the interval between meetings, it still remains below the historical average.