BMO Says Market Shifts From Low-Inflation Growth, Nasdaq Up 16% as AI Stocks Lead

According to BMO FX strategy head Mark McCormick, on June 6, the financial market has exited the "Goldilocks" phase of low inflation and stable growth, entering a new investment environment dominated by high interest rates, persistent inflation pressure, and tighter liquidity. McCormick stated in a report that policymakers' monetary and fiscal decisions will become the key driver of asset prices going forward.

BMO highlighted stocks as a promising investment, noting Nasdaq-100 has gained 16% year-to-date while Japan's Nikkei 225 index surged 34%. McCormick noted that growth-sensitive stocks and AI remain core investment themes, while safe-haven assets—including U.S. Treasuries, gold, and Bitcoin—have weakened due to the higher-for-longer rate environment. iShares Commodity ETF has gained over 20% year-to-date amid geopolitical tensions and supply constraints.