TLDR
- HSBC remains at its maximum overweight position on global equities.
- The bank favors U.S. and Asian technology stocks most strongly.
- HSBC prefers U.S. tech over small caps and also favors European banks.
- The Nasdaq 100 hit a record close Tuesday before pulling back Wednesday.
- Higher oil prices, bond yields and stretched tech valuations remain key risks.
HSBC is maintaining its most bullish stance on global stocks, arguing that investors should continue leaning heavily toward technology. Chief multi-asset strategist Max Kettner said the bank remains “maximum overweight” equities, with U.S. and Asian tech among its preferred areas.
MarketWatch: HSBC (Kettner) remains "max overweight" equities. pic.twitter.com/G0DlAUhuoF
— Neil Sethi NEW account (@neilsethinew) September 23, 2026
The call comes as technology stocks take a breather Wednesday. The Nasdaq Composite opened about 0.1% lower as oil prices and Treasury yields moved higher, while the S&P 500 was roughly flat.
That follows a strong start to the week. The Nasdaq 100 gained 2.8% Monday and another 0.8% Tuesday to close at a record 30,732.40, supported by renewed optimism around AI spending and monetization.
HSBC Still Favors Technology
HSBC prefers U.S. and Asian technology stocks and favors U.S. tech over smaller companies. The bank also remains positive on European banks and mildly overweight emerging-market and high-yield debt.
Kettner argues that recent economic data has remained resilient despite higher energy prices and bond yields. In HSBC’s view, those pressures have already affected both stock and credit markets, reducing the risk that investors are ignoring them entirely.
Technology remains the bank’s strongest equity preference. The sector has regained momentum after AI-related stocks led Monday’s rally, with semiconductor stocks and Meta among the biggest drivers.
Tuesday then brought another record for the Nasdaq as investors continued focusing on AI adoption, improving corporate earnings and the prospect of stronger returns from infrastructure spending.
HSBC’s positioning therefore assumes the recent AI rally still has room to develop rather than representing the end of the trade.
The bank is less positive on some areas of fixed income. HSBC remains underweight euro-zone government bonds and Japanese government bonds, especially at longer maturities, while moving U.K. gilts to overweight.
Oil, Rates and Politics Could Drive the Next Move
HSBC sees energy developments as one possible catalyst for markets. Kettner pointed to improving oil-supply headlines, including Saudi Arabia’s East-West pipeline, as something that could ease pressure on inflation and financial markets.
The bank also discussed November’s U.S. midterm elections. Kettner said recent changes in election betting markets could influence expectations for U.S. policy, but that is HSBC’s market interpretation rather than a prediction of the election result.
Markets still face clear risks. Oil prices were rising again Wednesday, while higher Treasury yields were putting some pressure on stocks, particularly rate-sensitive technology companies.
Valuation is another concern after the Nasdaq’s rapid recovery. Strong earnings would need to continue supporting prices, especially if borrowing costs stay high or enthusiasm around AI investment cools.
HSBC nevertheless remains positioned for further stock-market gains. Its latest allocation keeps equities at maximum overweight, with technology at the center of the strategy despite Wednesday’s modest pullback.
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