Hsbc strategist argues AI market downturn lacks fundamental shift

Max Kettner, Chief Multi-Asset Strategist at HSBC, contends that the recent sharp decline in US equities and AI stocks does not signal a fundamental deterioration in the technology trade. Kettner suggests that the current market volatility is likely being driven by positioning issues and forced selling rather than underlying structural problems within the AI sector. Furthermore, he provided insight into AI valuations, expressing comfort with an Anthropic IPO valuation falling below the $1 trillion mark. This perspective comes as Wall Street trading desks had recently been anticipating a resumption of the stock market rally following the conclusion of the election.