Barclays Still Favors U.S. Growth and Large-Cap Stocks as AI Spending Supports Earnings
Barclays strategists continue to favor U.S. growth stocks and large-cap stocks, saying AI spending will support corporate earnings. The team led by Venu Krishna wrote that the U.S. economy is still growing despite market volatility, while artificial intelligence-driven investment is supporting earnings. Given easing inflation expectations and slower growth, the strategists are neutral on cheaper stocks. They continue to favor large-cap stocks because their performance is stronger, while smaller companies face rising debt and tighter financing conditions. Because investors have already substantially reduced their large positions in the AI sector, the upside for defensive strategies has diminished.
Barclays strategists continue to favor U.S. growth stocks and large-cap stocks, saying AI spending will support corporate earnings.
The team led by Venu Krishna wrote that the U.S. economy is still growing despite market volatility, while artificial intelligence-driven investment is supporting earnings. Given easing inflation expectations and slower growth, the strategists are neutral on cheaper stocks.
They continue to favor large-cap stocks because their performance is stronger, while smaller companies face rising debt and tighter financing conditions.
Because investors have already substantially reduced their large positions in the AI sector, the upside for defensive strategies has diminished.
The team led by Venu Krishna wrote that the U.S. economy is still growing despite market volatility, while artificial intelligence-driven investment is supporting earnings. Given easing inflation expectations and slower growth, the strategists are neutral on cheaper stocks.
They continue to favor large-cap stocks because their performance is stronger, while smaller companies face rising debt and tighter financing conditions.
Because investors have already substantially reduced their large positions in the AI sector, the upside for defensive strategies has diminished.