Wall Street's recent risk-off and reduced equity exposure may set the stage for a sharp rebound if an Anthropic IPO rekindles investor interest in AI, with technology likely to lead. Deutsche Bank data show investors have trimmed equity exposure to roughly historical norms; active managers' exposure to US equities is at a one-month low and quant-driven funds have reduced positions, leaving room for fresh buying if confidence returns. Hedge funds have increased bearish bets: Goldman says its hedg

Wall Street's recent risk-off and reduced equity exposure may set the stage for a sharp rebound if an Anthropic IPO rekindles investor interest in AI, with technology likely to lead. Deutsche Bank data show investors have trimmed equity exposure to roughly historical norms; active managers' exposure to US equities is at a one-month low and quant-driven funds have reduced positions, leaving room for fresh buying if confidence returns. Hedge funds have increased bearish bets: Goldman says its hedge fund clients have sold short about $5 for every $1 of gross purchases this month, and securities-on-loan used to bet against stocks are near five-year highs — positioning that could amplify a rally via short-covering if markets turn up.