NewsSignals AI analysis·CNBC TV18·Oct 27, 2026

HSBC is no longer bullish on US stocks ahead of mid-term elections

Grade Abearish AI signal$SPX$NDX$WTI$BRENT

HSBC has turned more cautious on US stocks ahead of the midterm elections, cutting its equity allocation from maximum overweight to neutral for the first time since mid-March. Strategist Max Kettner cited concerns over potential AI regulation, renewed Iran war risks and rising long-term oil prices, while shifting to an overweight position in developed-market sovereign debt. Continued political uncertainty and geopolitical tensions could pressure equities in the near term, although Kettner remains bullish on the outlook for next year.

Bullish strength: 25/100

HSBC's strategist remains bullish on the outlook for next year.
Potentially more dovish Federal Reserve policy and positive free-cash-flow surprises from US AI hyperscalers could support stocks.

Bearish strength: 75/100

HSBC cut its stock allocation from maximum overweight to neutral.
Potentially stricter AI regulation following the midterms could weigh on equities.
Renewed Iran war risks and rising long-term oil prices add to market uncertainty.
Investor risk-off sentiment may persist into November.

This is automated NewsSignals analysis of third-party reporting, not independent original reporting or investment advice. AI scores are not price predictions.

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