HSBC is maintaining its most aggressive stance on global equities, keeping stocks at a "maximum overweight" allocation and directing investors to lean into technology, with particular emphasis on U.S. and Asian technology companies. In a multi-asset framework, a maximum overweight is the top conviction tier — an above-benchmark equity allocation representing the strongest positioning a strategist can signal — and it comes from a bank that ranks among the world's largest by assets. The bank's chief multi-asset strategist, Max Kettner, confirmed the positioning, which was flagged on X by market commentator Neil Sethi, citing a MarketWatch report:

MarketWatch: HSBC (Kettner) remains "max overweight" equities. pic.twitter.com/G0DlAUhuoF

— Neil Sethi NEW account (@neilsethinew) September 23, 2026

The stance reaffirms HSBC's view that equities — and technology in particular — remain the most compelling allocation despite a choppier backdrop for risk assets.

The recommendation lands as technology shares take a breather. On Wednesday, the Nasdaq Composite dipped roughly 0.1% at the opening bell amid climbing oil prices and rising Treasury yields, while the S&P 500 traded near unchanged levels. Technology is typically the most exposed corner of the equity market to that combination, since much of the sector's value rests on earnings expected years into the future: higher yields raise the discount rate applied to those profits, while costlier oil feeds inflation expectations that keep borrowing costs elevated. The pause follows a powerful run earlier in the week: the Nasdaq 100 surged 2.8% on Monday and added another 0.8% on Tuesday to close at a record 30,732.40, buoyed by renewed confidence in artificial intelligence investment and its revenue-generating potential.

Technology Remains HSBC's Top Conviction

HSBC expresses a clear preference for U.S. and Asian technology equities and ranks American tech above small-capitalization stocks. The bank also maintains a constructive view on European financial shares and holds modest overweight positions in emerging-market and high-yield fixed income.

Kettner contends that macroeconomic indicators have shown resilience despite elevated energy costs and higher bond yields. In HSBC's assessment, those pressures are already reflected in equity and credit market pricing, diminishing the likelihood that investors are overlooking them entirely.

Technology remains the bank's most confident equity call. The sector has recaptured positive momentum following Monday's AI-driven rally, with semiconductor manufacturers and Meta providing significant upward thrust. Tuesday delivered another milestone for the Nasdaq as market participants stayed focused on AI implementation, strengthening corporate profitability, and expectations for enhanced returns on infrastructure investments. HSBC's current allocation therefore presumes the recent AI-fueled advance has additional upside rather than marking its conclusion.

The bank is more cautious on parts of the bond market, holding underweight stances on eurozone sovereign debt and Japanese government bonds, particularly at extended durations, while upgrading U.K. gilts to overweight. Read together, the positions describe a deliberate relative tilt — heavier exposure to equities, lighter exposure to parts of the developed sovereign curve — rather than a blanket endorsement of every asset class.

Energy, Rates, and Politics Could Steer the Path Ahead

HSBC identifies energy market developments as a potential market catalyst. Kettner highlighted positive oil-supply news, including Saudi Arabia's East-West pipeline infrastructure — a crude conduit that moves oil across the kingdom to Red Sea export terminals and offers an alternative to flows through the Strait of Hormuz — as factors that could alleviate inflationary pressures and reduce stress in financial markets.

The bank also addressed November's U.S. midterm elections. Kettner noted that shifting dynamics in election prediction markets — venues where traders buy and sell contracts tied to electoral outcomes — might shape expectations for American policy direction, though he emphasized that this represents HSBC's market analysis rather than an electoral forecast.

Markets continue to confront tangible risks. Oil prices advanced again on Wednesday, while elevated Treasury yields pressured equities, particularly interest-rate-sensitive technology names. Valuation presents another concern following the Nasdaq's swift rebound: robust earnings performance would need to persist to justify current price levels, especially if financing costs remain elevated or excitement surrounding AI capital expenditure fades.

Nevertheless, HSBC remains positioned for further equity market appreciation. Its current asset allocation keeps stocks at maximum overweight, with technology serving as the cornerstone of strategy despite Wednesday's modest retreat. The variables the bank itself flags — oil-supply developments, election-market dynamics, and the durability of AI-linked earnings against elevated financing costs — are the markers against which the stance will be judged.

This article is based on reporting by Blockonomi.