Bloomberg Surveillance AI Angst Leads Election Day Stock Selloff
10 snips
Nov 4, 2025 Meera Pandit, a Global Market Strategist at J.P. Morgan, discusses the balancing act of AI optimism against valuation concerns and market volatility. Jennifer Lee, Senior Economist at BMO, analyzes sentiment data and inflation expectations that could shape Fed policy, predicting a December rate cut amidst a government shutdown impact. Former U.S. Representative Patrick McHenry weighs in on Election Day outcomes and anticipates a resolution to the shutdown before Thanksgiving, hinting at broader implications for midterm politics.
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AI Momentum With Measured Risks
- Meera Pandit says AI shows strong momentum but widespread exuberance could hide risks like adoption stalls and excessive leverage.
- She emphasizes the need for revenue monetization, healthy deal circularity, and energy supply to sustain the AI sector.
Prepare Portfolios For AI Volatility
- Meera Pandit advises investors to expect healthy consolidation and be prepared for volatility within AI names and the broader tech cohort.
- She recommends diversification across and beyond the AI theme to cushion portfolios during drawdowns.
Financials Powering Earnings Surprise
- Pandit highlights financials as an unexpected earnings standout contributing to robust S&P EPS growth outside tech.
- She notes financials' consumer exposure and deregulatory tailwinds helped drive double-digit subsector growth.