Global equity markets corrected last week as investors reassessed lofty AI valuations amidst hawkish Federal Reserve signals. Defensive sectors outperformed, contrasting sharply with the severe sell-off in technology and semiconductor stocks.
Key Takeaways
- 1.Global equity markets experienced a sharp sell-off driven by a reassessment of AI-related valuations and a hawkish pivot from the Federal Reserve.
- 2.Market rotation away from technology and growth into defensive sectors like healthcare, staples, and financials was prominent.
- 3.Asia, particularly semiconductor-heavy markets like South Korea and Taiwan, bore the brunt of the global volatility.
Table of Contents
- The Chart of the Week
- What happened last week?
- Global markets
- US
- Europe
- Rest of the world
- Our view on equities
- Equity asset class
- Earnings
- Valuation
- Risks
- Disclaimer
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Securities
GOOGLMicron TechnologySK Hynix
Themes
AI Capex SkepticismDefensive Market RotationFed Hawkishness
Regions
GlobalEuropeAsia PacificUnited StatesSouth KoreaTaiwan