HSBC strategist Duncan Toms told Yahoo Finance that AI investments can likely withstand a higher-rate environment even if the Federal Reserve raises interest rates. Toms noted that HSBC does not expect any Fed rate hikes this year and that if current inflation trends persist, rate hike expectations could fade by September. Yesterday's inflation data was very welcome news, and he pointed to pockets of deflation in goods and super core inflation, though energy prices are linked to what's going on in the Middle East. He emphasized that AI exceptionalism could drive market-cap-weighted S&P 500 performance even if the broader US economy disappoints slightly.
HSBC Holdings PLCHSBC strategist quoted expressing positive view on AI investments and inflation outlook, but no direct impact on HSBC itself.