Sticky inflation clouds rate outlook, but AI and earnings keep markets resilient: Santosh Rao

The AI-driven market rally is expanding beyond tech, with healthcare, financials, and transportation sectors showing robust participation, signaling a healthy economy.

Despite sticky inflation, strong corporate earnings are supporting elevated equity valuations.

Investors anticipate the US Federal Reserve may maintain higher interest rates for longer, strengthening the dollar and posing challenges for commodities and emerging markets.

Geopolitical tensions in the Middle East are identified as a significant risk.