0212 GMT - The recent selloff in the S&P 500 likely reflects the possibility of a shallow recession in the U.S., says Nicole Inui at HSBC Global Research. The index is down by close to 9% from recent highs and has given up all post-election gains as recession fears build, she notes. The head of equity strategy reckons the selloff suggests the index may be near the bottom and sees opportunities amid the volatility. Inui likes tech, financials and remains selective in consumer discretionary. She thinks that the massive de-rating in tech is unwarranted and favors financials as the sector is mostly immune to tariff and trade threats. However, investors should remain selective in consumer discretionary as lower-income consumers remain under pressure while high-end consumers should stay resilient, she adds. (monica.gupta@wsj.com)
(END) Dow Jones Newswires
March 11, 2025 22:12 ET (02:12 GMT)
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