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

The midterm elections seem to have given major tech companies, known as hyperscalers, a reason to reduce their spending on infrastructure, according to Jefferies strategist Chris Wood. With the narrative around artificial intelligence capital expenditures losing steam, Wood suggests pivoting focus to sectors like pharmaceuticals and markets in India, Brazil, and China. This shift could have broader implications for how tech investments are allocated, signaling a possible slowdown in tech spending.