Live Markets: AI disruption overblown but not yet time to buy - Jefferies

Loreal SA

13/02/2026 11:02

Adds blog post

STOXX 600 down 0.2%

L'Oreal falls after results

Defence stocks rise

US futures steady

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com.

AI DISRUPTION IS NOT A NEGATIVE - JEFFERIES

At the single stock level, moves due to AI disruption in the last couple of weeks have been dramatic. From software companies, to financials and Thursday's logistics sell-off, markets are jumpy.

Jefferies economist Mohit Kumar suggests that some of the fears might be overblown but wouldn't recommend catching the falling knives.

"We do not agree with the frenzy, but we also know not to stand in the way of position unwinds and flows," Kumar says.

Software has been one of the hardest hit sectors broadly, although Kumar thinks AI disruption may not be negative on the whole.

"Companies which could show cost advantages from AI would be the winners while companies where the revenue stream is getting impacted would be losers," he says. How long that will take to play out is another question.

"For now, we would recommend investors investing time and effort in identifying winners and losers, and keep powder dry," he adds.

(Samuel Indyk)

*****

EARLIER LIVE MARKETS POSTS

LUXURY STRUGGLES ON L'OREAL RESULTS CLICK HERE

EUROPE BEFORE THE BELL: NOT ANOTHER AI-INDUCED SELLOFF CLICK HERE

MORNING BID: NO LONGER THE APPLE OF THEIR EYE
CLICK HERE