Wealth Managers Back US Tech and Emerging-Market Stocks as S&P 500 Gains 13.3%
Updated
Updated · Wealth Briefing · Aug 14
Wealth Managers Back US Tech and Emerging-Market Stocks as S&P 500 Gains 13.3%
2 articles · Updated · Wealth Briefing · Aug 14
Summary
HSBC Private Bank and Franklin Templeton say they still favor tech-led US equities and emerging markets in 2026, even after July volatility hit semiconductors and AI infrastructure shares.
13.3% S&P 500 gains, 14.5% for the Nasdaq and 21.6% for the Russell 2000 support that view, while HSBC says broader participation shows the US market is relying less on the Magnificent 7.
July's pullback also reset parts of tech valuations: technology fell 3.5%, semiconductor equipment dropped 32.5%, and tech's forward P/E premium to the S&P 500 narrowed to about 4.8x from 10.7x.
Franklin Templeton expects more than 20% earnings growth for US and global equities over 12 months and 35% in emerging markets, keeping overweight positions in the US, Japan and EM with an AI tilt.
The firms are less positive on markets with weaker AI exposure, staying underweight euro-area equities over energy risks and naming Australia their least-preferred region.