DGI

Market commentators are debating how to protect portfolios from a possible pullback in artificial intelligence stocks, which have driven much of the recent gains in US equities. With a handful of tech giants accounting for an outsized share of index performance, strategies under discussion include diversifying into value stocks, international markets, bonds and cash. The worry is that any stumble in AI spending or earnings could hit the broader market hard.

The Reserve Bank of India has issued clarifications on recently imposed restrictions on foreign exchange hedging. The move follows confusion among companies and exporters over the scope of the curbs, which tightened rules on currency derivative positions. Businesses and markets are watching closely for how the rules will affect hedging costs and access to currency derivatives.