Midterm elections provided the hyperscalers with the excuse they needed to cut back on spending, says Jefferies strategist

AI Summary

Jefferies strategist Chris Wood says the U.S. midterm elections have given major cloud and technology companies cover to reduce spending. If AI capital expenditure loses momentum, he sees potential opportunities in pharmaceuticals and markets including India, Brazil, and China.

If the AI capex narrative is losing momentum then Jefferies strategist Chris Wood can recommen some sectors , like pharma, and some markets like India, Brazil and China, as ways to play that slowdown.