Swissquote analyst warns AI narrative has become a core pillar of US stocks, and a rupture could trigger a notable correction

Odaily News: Ipek Ozkardeskaya, senior analyst at Swissquote Bank, stated that broad-based indices and pension funds are now deeply tied to the AI wave, with tech stocks accounting for roughly 40% of the S&P 500. She pointed out that just three chip manufacturers alone make up more than 25% of the market capitalization weight of the MSCI Emerging Markets Index. Ozkardeskaya said AI has become the market's "core pillar," and this pillar "cannot afford to crack."

In the short term, US equities will still be supported by seasonal factors, and the current stock market rally may continue through the end of the year. However, she also warned that the worst-case scenario is a weakening of the AI investment thesis, damaging market confidence in the AI story, thereby triggering a notable stock market correction. (Jinshi)