Alexander Altmann, Barclays’ global head of equities tactical strategies, is skeptical about the strength of the U.S. stock market rebound after the brutal sell-off that also dragged cryptocurrencies lower. He cites negative market breadth, mediocre growth stock performance, a modest rebound in specialized cloud stocks, the ongoing crypto slump and a flat quality factor. According to Barclays models cited by Bloomberg, volatility-control funds may dump as much as $135 billion in U.S. equity futures within 24 to 48 hours following the market turmoil. Altmann also argued that investors are in a “denial phase” about risks to the artificial intelligence sector and growing financing pressure on specialized cloud companies hosting computing resources for AI applications.
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