Edmond de Rothschild flags AI concerns as risk assets sell off
SPY•Edmond de Rothschild said technology and AI concerns drove a broad risk-off move, with the Nasdaq 100 falling 1.9% over the week and global corporate credit spreads reaching 129 basis points. The analysis reduced relative exposure to technology and AI themes but kept a constructive overall equity outlook.
1. Market outlook
Edmond de Rothschild said technology and AI concerns drove a broad risk-off move, with the Nasdaq 100 down 1.9% over the week. Global corporate credit spreads widened to 129 basis points, their highest since May 2025, while France’s OAT-Bund spread reached a record 172 basis points as oil above $110 a barrel heightened fiscal concerns. The analysis reduced relative equity exposure to technology and AI themes through geographical diversification, while maintaining a constructive overall equity outlook. It favored short-end carry and roll-down strategies, kept a bearish dollar outlook and remained bullish on gold.
