HSBC is holding its most bullish stance on global equities, keeping stocks at a "maximum overweight" allocation and urging investors to keep leaning heavily into technology. Max Kettner, the bank's chief multi-asset strategist, said U.S. and Asian technology shares remain among HSBC's preferred areas. The London-headquartered lender is one of the world's largest banking and financial services groups, and allocation calls on that scale are watched closely as a gauge of how major institutions are positioned across stocks and bonds.

MarketWatch: HSBC (Kettner) remains "max overweight" equities. pic.twitter.com/G0DlAUhuoF — Neil Sethi NEW account (@neilsethinew) September 23, 2026

The call arrives as technology stocks take a breather. On Wednesday, the Nasdaq Composite opened about 0.1% lower as oil prices and Treasury yields moved higher, while the S&P 500 traded roughly flat. The early pullback was modest, leaving this week's gains largely intact.

That pause followed a strong start to the week. The Nasdaq 100 gained 2.8% on Monday and added another 0.8% on Tuesday to close at a record 30,732.40, supported by renewed optimism around artificial intelligence (AI) spending and monetization.

HSBC Still Favors Technology

The bank prefers U.S. and Asian technology stocks, with a firmer preference for U.S. tech over smaller companies. HSBC also remains positive on European banks and is mildly overweight emerging-market and high-yield debt.

Kettner argues that recent economic data has stayed resilient despite higher energy prices and bond yields. In HSBC's view, those pressures have already been reflected in both stock and credit markets, reducing the risk that investors are ignoring them entirely. That reading underpins its decision to stay heavily invested in equities.

Technology remains the bank's strongest equity preference. The sector regained momentum after AI-related stocks led Monday's rally, with semiconductor shares and Meta among the biggest drivers. Tuesday then delivered another record for the Nasdaq as investors continued to focus on AI adoption, improving corporate earnings and the prospect of stronger returns from infrastructure spending.

HSBC's positioning therefore assumes the recent AI rally still has room to develop rather than marking the end of the trade.

The bank is less positive on parts of the fixed-income market. HSBC remains underweight euro-zone government bonds and Japanese government bonds, particularly at longer maturities, while moving U.K. gilts to overweight — a reshuffle that keeps its bond positioning selective even as it leans hardest into equities.

Oil, Rates and Politics Could Drive the Next Move

HSBC identifies energy developments as one possible market catalyst. Kettner pointed to improving oil-supply headlines, including Saudi Arabia's East-West pipeline, which carries crude from the Gulf coast to the Red Sea, as a factor that could ease pressure on inflation and financial markets.

The bank also addressed November's U.S. midterm elections, which will determine the makeup of Congress. Kettner said recent shifts in election betting markets could influence expectations for U.S. policy, though he framed that as HSBC's market interpretation rather than a prediction of the election outcome.

Markets still face clear risks. Oil prices were rising again on Wednesday, and higher Treasury yields were weighing on stocks, particularly rate-sensitive technology companies — a sector whose valuations rest more heavily on earnings expected further in the future, which is why it tends to feel rising borrowing costs first.

Valuation presents another concern following the Nasdaq's rapid recovery. Strong earnings would need to keep supporting prices, especially if borrowing costs remain elevated or enthusiasm around AI investment cools — making the incoming run of corporate earnings updates the clearest evidence to watch on whether fundamentals keep pace with prices.

Even so, HSBC remains positioned for further stock-market gains. Its latest allocation keeps equities at maximum overweight, with technology at the center of the strategy despite Wednesday's modest pullback. The stance signals continued conviction that the technology-led advance can extend, even as risks build around energy prices, interest rates and valuations.