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LIVE MARKETS-HSBC sets caution aside, says to buy equities again

By Reuters News

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HSBC SETS CAUTION ASIDE, SAYS TO BUY EQUITIES AGAIN

Now is the time to buy back into stocks, at least tactically, say HSBC, after big Democratic wins in last week's US Midterm Elections spurred a correction in global markets on fears of a slowdown in the AI-trade.

Two weeks ago, HSBC Global Investment Research urged caution on equities due to negative narratives around AI capex spending, fears of tighter regulation due to a "Blue Wave" in the US and unease over a possible flare up in the Middle East.

The first two themes have played out already, HSBC says, and the latter is "less of a concern" as the outcome of the mid-terms could suggest a more conciliatory tone.

After Thursday saw investors wipe $2.5 trillion off the Nasdaq .NDX -the index fell 6.4%, its biggest single-day drop since April 2025 - HSBC now sees an opportunity to add stocks.

"We reverse our move from two weeks ago and now prefer tech over SPW/broadening themes again," HSBC writes, referring to the equal-weighted S&P 500 .SPXEW.

According to the analysts, Anthropic's IPO will most likely be a catalyst, alongside Nvidia's NVDA.O earnings next week.


(Javi West Larrañaga)



EARLIER ON LIVE MARKETS:

THIS IS NOT LIKE THE DOTCOM BUBBLE CLICK HERE CLICK HERE

SIGNS OF AI BENEFITS EMERGING ACROSS EUROPE INC CLICK HERE

BANKS, MINERS SUPPORT THE STOXX AS OIL FALLS CLICK HERE

BEFORE THE BELL: EUROPE FUTURES SOFT, NVIDIA DENTS TECH BOUNCE CLICK HERE

FRAGILE CALM AFTER AI WHIPLASH CLICK HERE

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