AI-Summary – News For Tomorrow
Matthews believes a Santa Claus rally is likely, citing strong US economic data (4.3% GDP growth) and renewed AI tech momentum. He compares the current market phase to the late 90s, implying potential growth. Regarding the Indian IT sector’s underperformance due to AI disruption fears and US-India trade friction, Matthews remains positive. He argues that massive global AI investment will continue, allowing Indian IT companies to adapt and find new roles. He believes the sector bottomed out recently, signaling a potential recovery.
News summary provided by Gemini AI.
On global markets, Matthews said he sees no reason why the traditional Santa Claus rally should not play out, noting that recent news flow has been constructive. He pointed to strong US economic data, including third-quarter GDP growth of 4.3 percent, and said the AI-technology bull market appears to be regaining momentum. Drawing a parallel with history, he said the current phase feels closer to 1997 or 1998 rather than the peak of the dot-com bubble in 2000, suggesting that markets may still have room to run.
On the Indian information technology sector, Matthews said the underperformance over the past year stemmed from concerns that parts of the services model could be disrupted by artificial intelligence, as well as indirect fallout from trade frictions between India and the United States. However, he remains constructive on the sector, arguing that the scale of global investment in AI remains substantial and is unlikely to slow meaningfully. He said Indian IT companies are likely to adapt by finding new roles within the evolving technology ecosystem and added that the sector appears to have bottomed a few months ago.
