Europe Capital Partners sees AI investment doubts driving technology sell-off
XLK•XLK•XLK•XLK•Europe Capital Partners said doubts about AI infrastructure spending contributed to last week’s sharp sell-off, with technology and energy hardest hit. Five of 11 S&P 500 sectors advanced, while the firm said the correction reflected repriced expectations rather than an end to AI investment.
Europe Capital Partners’ November 9 analysis identified technology and energy as the hardest-hit sectors in last week’s sharp sell-off. It said investors were demanding stronger returns and evidence of earnings growth, while resistance to data centers and pressure to end the Iran war could ease inflationary pressures from infrastructure spending and energy prices. The firm said its longer-term equity outlook remained constructive, favoring businesses with sustainable earnings, strong balance sheets and reasonable valuations.
