Markets Edition: Tech Trade at a Crossroad
KEY TAKEAWAYS
- Citi Research outlines its Q3 positioning, highlighting a shift from broad tech optimism to a more selective view despite AI's continued influence on S&P 500 earnings growth particularly in semiconductors
- The market is experiencing a "broadening dynamic" beyond just tech with potential recoveries in cyclical sectors like consumer discretionary and industrials as easing oil prices may temper inflation concerns and Fed hawkishness
- While AI remains crucial ongoing monitoring of AI capital expenditure and its potential impact on sectors like software will be key to navigating evolving equity market dynamics and identifying diversified investment opportunities
Scott Chronert looks at what may await U.S. equity markets in the third quarter, considering a "game of chicken" within the AI trade as well as the prospects for a broadening dynamic in the rest of the S&P 500.
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Scott Chronert, Managing Director at Citi Research
Scott Chronert is a Managing Director at Citi Research serving several roles, including US Equity Strategist, Global Head of ETF Strategy & Analysis, and US Small/Mid Cap strategy. Scott assumed the US Equity Strategy role at Citi in October 2021. He brings a fundamental approach to assess the US equity landscape. Regarding ETFs, Scott and his team have been at the forefront of sell-side, institutional grade, analysis of the ETF ecosystem since 2012. His product covers all facets of ETFs, including broader industry trends, flow analysis, stock and market impacts, complemented with positioning views covering most asset classes and geographies. His work on US Small/Mid Cap provides a blend of top-down and stock-specific insight. Scott also contributes to Citi’s global equity strategy product. Prior to joining Citi Research in 2010, Scott spent more than 25 years in Institutional Equity Sales and Management roles (mostly at Citi). Citi was named Global ETF Research Provider of the Year 2019 by ETFexpress. Scott is a graduate of Dartmouth College, AB degree 1978 and UCLA Graduate School of Management, MBA degree 1980.
