HSBC sets caution aside, says to buy equities again
QQQ•HSBC now recommends tactically buying stocks, reversing its cautious stance from two weeks ago after a market correction. The Nasdaq fell 6.4% on Thursday, wiping $2.5 trillion from its value, and HSBC says an Anthropic IPO and Nvidia earnings could be catalysts.
1. HSBC shifts its stance
HSBC says investors should buy stocks tactically after big Democratic wins in last week's U.S. midterm elections contributed to a correction in global markets over concerns about a slowdown in the AI trade. Two weeks earlier, the bank had urged caution over AI capital spending, possible tighter regulation and Middle East tensions; HSBC now says the first two concerns have played out and the latter is less concerning.
2. Tech back in favor
After the Nasdaq fell 6.4% on Thursday, its biggest one-day drop since April 2025, wiping $2.5 trillion from its value, HSBC said it now prefers technology stocks over equal-weighted S&P 500 and broader-market themes. The analysts cited a likely Anthropic IPO catalyst and Nvidia earnings next week.
