Wall Street Sees Buy-the-Dip Opportunity After US Tech Slide; Morgan Stanley Says Add Exposure Over Next 2-3 Weeks
Summary
- Mike Wilson said the next two to three weeks are a period to increase equity exposure and maintained his year-end S&P 500 target at 8,000.
- Ed Yardeni said the latest decline was a simple correction and set his year-end S&P 500 target at 7,900.
- Oh Seong Kwon said semiconductor and AI infrastructure-related stocks are likely to face downward pressure and set a year-end S&P 500 target at 7,700.
Forecast Trend Report by Period
Major Wall Street firms are looking for buy-the-dip opportunities after the recent selloff in U.S. technology stocks.
Bloomberg reported on November 7 that the S&P 500 and Nasdaq 100 fell 4.4% and 6.4%, respectively, on November 5. Selling intensified on concern that regulation of data centers and the artificial intelligence industry could tighten after Democrats scored a sweeping victory in the U.S. midterm elections.
Mike Wilson, Morgan Stanley's chief U.S. equity strategist, said the next two to three weeks are a window to increase equity exposure. He maintained his year-end target for the S&P 500 at 8,000, about 8.4% above the November 6 close.
Ed Yardeni, chief investment strategist at Yardeni Research, also characterized the decline as a simple correction rather than the bursting of a bubble. While the AI bubble is gradually deflating, he does not expect it to turn into a collapse that delivers a severe shock to the economy. He set a year-end S&P 500 target of 7,900.
Oh Seong Kwon, chief equity strategist at Wells Fargo, took a more cautious view. He said semiconductor shares and AI infrastructure-related stocks, which led the market this year, are likely to remain under downward pressure for the time being.
He set a year-end S&P 500 target of 7,700. Kwon added that concern over slowing AI investment could end up supporting shares of companies such as Alphabet and Amazon.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul