Lollands Bank sees AI fundamentals intact despite stock market selloff
SPY•Lollands Bank said AI fundamentals remain intact despite a sharp selloff: the S&P 500 fell 4.4%, the Nasdaq dropped 5.5%, and an AI-memory index plunged 12.6%. Semiconductor earnings-growth expectations for 2026 have risen about 25 percentage points since June’s market peak.
1. Selloff and earnings outlook
A November 6 market analysis recommended maintaining investment strategies despite a sharp selloff, citing resilient earnings expectations. The S&P 500 fell 4.4% on Thursday, wiping out about $2.9 trillion in market value, while the Nasdaq dropped 5.5%; an AI-memory index plunged 12.6%, its worst session since its 2020 inception. Semiconductor earnings-growth expectations for 2026 have risen about 25 percentage points since June’s market peak. The US 10-year yield was broadly unchanged, and credit spreads widened to 3.4 percentage points without signaling systemic stress.
