Disappointing earnings from US megacap technology companies intensified a rotation out of AI-related stocks last week, triggering a sharp sell-off in the technology sector. Investors shifted toward smaller-cap companies and more defensive parts of the market as confidence in the AI trade weakened.
Jordan Jackson, Global Market Strategist at JPMorgan Asset Management, described the move as a “crisis of confidence” and argued that the sell-off surrounding artificial intelligence stocks has been overstated.
Jackson also discussed how he expects markets to develop after the US midterm elections, against a backdrop of continued investor repositioning following the technology sector’s decline.
Sources: Bloomberg Markets.