UBS On-Air: Market Moves House Call: Talking Equity Markets with UBS Asset Management
7 snips
Mar 10, 2026 A performance update on US equities and early-cycle signals shaping growth expectations. A look at how AI is shifting market leadership and driving volatility. Discussion of AI disruption risks and which software firms may be insulated. Insights from company commentary on AI spending, hyperscaler capex, and improving cyclical demand. Portfolio positioning that balances AI winners with value and cyclicals.
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Early Cycle Signs Underlie Tepid S&P Performance
- US market shows early-cycle dynamics with supportive fiscal/monetary policy and rising leading indicators.
- ISM new orders, loan demand pickup and positive durable goods point to broadening growth beyond headline S&P stagnation.
Sharp Rotation Into Value and Smaller Caps
- Strong rotation from growth into value and small/mid caps has driven divergence in returns this year.
- Through yesterday Russell 1000 Value was up ~6% while Russell 1000 Growth was down ~5%, leaving S&P near flat.
AI Hype Triggered Broad, Indiscriminate Selling
- AI-driven volatility has produced multi-σ moves and indiscriminate selling across software and other sectors.
- Software selling spilled into internet, gaming, insurance brokers, office REITs and freight logistics on perceived margin risk.