Midterm elections provided the hyperscalers with the excuse they needed to cut back on spending, says Jefferies strategist
Published . Updated .
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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.
Directly affected
- No company is named in this report.
Indirectly affected
- QQQ Invesco QQQ-9.8% 30d
Invesco QQQ: it holds the big tech and AI names. Linked by “hyperscaler” (AI and big tech) in this story.
- AIQ Global X Artificial Intelligence & Technology ETF-6.1% 11d
Global X Artificial Intelligence & Technology ETF: it holds the big tech and AI names. Linked by “hyperscaler” (AI and big tech) in this story.
- XLV Health Care Select Sector SPDR
Health Care Select Sector SPDR: it holds drugmakers and health companies. Linked by “pharma” (pharma and health) in this story.
- EWZ iShares MSCI Brazil ETF-13.8% 30d
iShares MSCI Brazil ETF holds stocks listed in Brazil, which this story is about (“brazil”).
- FXI iShares China Large-Cap ETF-2.2% 30d
iShares China Large-Cap ETF holds stocks listed in China, which this story is about (“china”).
- MSFT Microsoft+1.1% 30d
Microsoft (prepackaged software): big tech's AI spending and demand drive its shares. Linked by “hyperscaler” (AI and big tech) in this story.
- GOOGL Alphabet-16.0% 30d
Alphabet (computer programming, data processing, etc.): big tech's AI spending and demand drive its shares. Linked by “hyperscaler” (AI and big tech) in this story.
- AMZN Amazon.com+6.4% 30d
Amazon.com (catalog and mail-order houses): big tech's AI spending and demand drive its shares. Linked by “hyperscaler” (AI and big tech) in this story.
Price reaction, T-5 to T+3
| Ticker | T-5 | T-3 | T-1 | T0 | T+1 | T+2 | T+3 |
|---|---|---|---|---|---|---|---|
| QQQ | -4.63% | -1.94% | base | after close | after close | after close | after close |
| AIQ | -4.31% | -1.83% | base | after close | after close | after close | after close |
| XLV | -1.60% | +0.57% | base | after close | after close | after close | after close |
| EWZ | +0.66% | +1.10% | base | after close | after close | after close | after close |
| FXI | +4.36% | +2.79% | base | after close | after close | after close | after close |
| MSFT | +1.45% | +1.95% | base | after close | after close | after close | after close |
| GOOGL | -4.68% | -3.77% | base | after close | after close | after close | after close |
| AMZN | -2.99% | +1.29% | base | after close | after close | after close | after close |
Closing-price change versus T-1, the last close before the story. T0 to T+3 fill in after each market close. Prices: Alpaca IEX.
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.
Source: MarketWatch
This story
| Company | When | Move | Status |
|---|---|---|---|
| AIQ | three days earlier | -1.83% | final price |
| AIQ | five days earlier | -4.31% | final price |
| AMZN | three days earlier | +1.29% | final price |
| AMZN | five days earlier | -2.99% | final price |
| EWZ | three days earlier | +1.10% | final price |
| EWZ | five days earlier | +0.66% | final price |
| FXI | three days earlier | +2.79% | final price |
| FXI | five days earlier | +4.36% | final price |
| GOOGL | three days earlier | -3.77% | final price |
| GOOGL | five days earlier | -4.68% | final price |
| MSFT | three days earlier | +1.95% | final price |
| MSFT | five days earlier | +1.45% | final price |
| QQQ | three days earlier | -1.94% | final price |
| QQQ | five days earlier | -4.63% | final price |
| XLV | three days earlier | +0.57% | final price |
| XLV | five days earlier | -1.60% | final price |
Congressional trades in the stocks in this story
- Rep. Rohit Khanna sold Microsoft (MSFT) (held by a dependent child), worth $1,001 - $15,000 on 28 Oct 2026. That is 16 days before publication. Filed 5 Nov 2026. View the filing.
- Sen. Shelley M Capito sold Microsoft (MSFT) (held by a spouse), worth $1,001 - $15,000 on 21 Oct 2026. That is 23 days before publication. Filed 4 Nov 2026. View the filing.
- Sen. Sheldon Whitehouse sold Microsoft (MSFT) (held by a spouse), worth $1,001 - $15,000 on 15 Oct 2026. That is 29 days before publication. Filed 2 Nov 2026. View the filing.
- Rep. Rohit Khanna bought Alphabet (GOOGL) (held by a dependent child), worth $1,001 - $15,000 on 28 Oct 2026. That is 16 days before publication. Filed 5 Nov 2026. View the filing.
- Rep. Pete Sessions sold Alphabet (GOOGL), worth $15,001 - $50,000 on 14 Sep 2026. That is 60 days before publication. Filed 18 Sep 2026. View the filing.
- Rep. Rohit Khanna sold Alphabet (GOOGL) (held by a spouse), worth $1,001 - $15,000 on 4 Sep 2026. That is 70 days before publication. Filed 7 Oct 2026. View the filing.
- Rep. Pete Sessions sold Amazon Com (AMZN), worth $15,001 - $50,000 on 27 Oct 2026. That is 17 days before publication. Filed 27 Oct 2026. View the filing.
- Rep. Pete Sessions sold Amazon Com (AMZN) (held by a spouse), worth $100,001 - $250,000 on 2 Oct 2026. That is 42 days before publication. Filed 27 Oct 2026. View the filing.
- Rep. Michael T. McCaul sold Amazon Com (AMZN) (held by a spouse), worth $1,001 - $15,000 on 28 Aug 2026. That is 77 days before publication. Filed 14 Oct 2026. View the filing.
Public disclosure filings, not a recommendation. The filing link is the source document. News use of these reports still sits under 5 U.S.C. § 13107(c).
This story
12 out of 100
“Midterm elections provided the hyperscalers with the excuse they needed to cut back on spending, says Jefferies strategist” scores 12 out of 100. The score uses 1 sources.