HSBC Strategist Says AI Trade Hasn't Changed
HSBC's Chief Multi-Asset Strategist Max Kettner argues the AI trade hasn't fundamentally changed, despite a sharp selloff. This matters as Wall Street's biggest trading desks had expected a stock-market rally after the election.
Original reporting · bloomberg.com
Original: “HSBC’s Max Kettner: The AI Trade Hasn’t Fundamentally Changed”
Read “HSBC’s Max Kettner: The AI Trade Hasn’t Fundamentally Changed” at Bloomberg Technology →How this was written. GMS Agency Desk wrote this article with a language model from Bloomberg Technology’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from Bloomberg Technology’s report
- HSBC's Max Kettner argues the AI trade hasn't fundamentally changed.
- The sharp selloff in AI has raised questions about the sector's prospects.
- Wall Street's biggest trading desks had expected a stock-market rally after the election.
HSBC's Chief Multi-Asset Strategist Max Kettner argues that the sharp selloff in AI hasn't fundamentally changed the trade. This assessment comes after Wall Street's biggest trading desks spent weeks anticipating that the stock-market rally would resume once the election was over.
On Thursday, this call backfired spectacularly, leading to a reevaluation of the market's direction. The sharp selloff in AI, in particular, has raised questions about the sector's prospects.
Kettner's argument suggests that the underlying factors driving the AI trade remain intact, despite the recent downturn. This implies that the sector may still have potential for growth, although the timing and extent of this growth are uncertain. This article is based on reporting by Bloomberg Technology.
Questions and answers
What is Max Kettner's view on the AI trade?
Max Kettner argues that the AI trade hasn't fundamentally changed.
How did Wall Street's biggest trading desks expect the market to perform after the election?
They expected the stock-market rally to resume once the election was over.
