HSBC strategists maintain bullish stance on stocks amid positive data

Published 01/09/2025, 12:02
© Reuters.

Investing.com -- HSBC strategists are maintaining a positive outlook on stocks, supported by better-than-expected economic data, according to a note from the team including Duncan Toms and Max Kettner.

The strategists view current tariff discussions as "background noise for markets" and believe that even if hawkish risks materialize, risky assets would likely remain resilient.

HSBC reiterates an overweight position on equities and high-yield debt, with a particular preference for US stocks. The team expects market gains to extend beyond the S&P 500 as artificial intelligence investments spread to additional sectors.

The strategists anticipate that an improving growth outlook will boost previously lagging activity-sensitive industries, including consumer durables & apparel, household & personal products, and transportation.

Despite their broadly positive stance, the HSBC team does not yet consider the small-cap Russell 2000 index as an attractive investment opportunity.

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