HSBC downgraded its stance on global equities to neutral from max overweight on October 26, 2026, citing renewed geopolitical concerns around the Middle East and the prospect of artificial intelligence regulation ahead of the US midterm elections.

Why HSBC changed its global equities stance

The move shifts HSBC’s stated position away from its most overweight stance. Its concerns span both geopolitical risks in the Middle East and potential US regulation affecting AI.

In a note, HSBC said bearish narratives around AI would be hard to overcome in the coming weeks, although it expected eventual support.

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