CITIC Securities: The "Big and Beautiful" Act is bad news for US medical and new energy stocks

Planet Daily News: CICC Research Report states that Trump has officially signed the "Big and Beautiful" Bill (OBBB), covering a broad conservative political agenda and expanding government deficit by $3.4 trillion cumulatively by 2034. Regarding the US bond market, the bill further increases future debt pressure, expected to drive up the central rate of medium and long-term US Treasury bond yields. Concerning the US stock market, earnings expectations have stabilized and rebounded since late June. The OBBB bill negatively impacts healthcare and new energy stocks, suggesting focus on technology industries with more matched valuations and performance, manufacturing benefiting from re-industrialization and policy support, upstream and midstream resources, and nuclear power industries. For the US tech sector, the bill is favorable to tech giants, AI, and semiconductor equipment. In the energy industry, while new energy faces challenges, energy storage policies are somewhat mitigated; the bill actively promotes traditional energy revival, with potential opportunities in industries like nuclear power. (Jintian)