If markets sell off again, get ready to buy U.S. stocks, says HSBC

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HSBC strategists say it's too early for investors to start bargain hunting after the recent two-week selloff, as they see another broad-based slump possibly...

It’s Nvidia earnings day, with stock futures, notably tech, and the AI leader’s shares rising ahead of Wednesday’s open. It’s fair to say a lot is riding on those results, while the Fed’s Jackson Hole end-week gathering is keeping others on edge.

There’s more dip advice in our call of the day from a team at HSBC led by chief multi-asset strategist Max Kettner, who advises against investors getting tempted by the broad-based sell-off across major asset classes over the past two weeks. That’s as they note the pullback has been “extremely tough ” to hedge against.

in U.S. equities, given our unchanged view on growth, inflation and fundamentals overall,” said the team. The team say they are closely watching both U.S. bond supply and Jackson Hole, alongside sentiment and positioning that has overall become more neutral in the past two weeks. “We still don’t think the correction since late-July will be a large-scale sell-off, though, given that positioning among discretionary investors is fairly low again,” they said.

The buzz Bath & Body Works’ BBWI, -4.85% stock is off 7% in premarket after cutting its earnings and sales outlook. That comes after weak results from department store chain Macy’s M, -14.05%, which says credit-card delinquencies are on the rise. The S&P flash U.S. manufacturing and services PMIs for August are due at 9:45 a.m., followed by new home sales at 10 a.m.

 

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