The arrival of several high-profile AI-related initial public offerings, including Anthropic, OpenAI and SpaceX (NASDAQ:SPCX), may create temporary challenges for financial markets as investors absorb an unprecedented amount of new equity supply, according to Standard Chartered’s Global Chief Investment Officer for Wealth Solutions, Steve Brice.
Speaking to CNBC on Tuesday, Brice said the market may require time to adjust to the scale of the upcoming listings.
“There’s going to be some digestion challenges of these IPOs coming through the market, and some of the broadening out usually does take place well, but it doesn’t necessarily happen in a totally smooth fashion,” Brice said.
Investor Optimism May Be Tested
Although Brice remains positive on the long-term outlook, he signaled a more measured stance toward markets over the coming months.
“I isn’t ‘super, super bullish at this point.’”
He suggested that a combination of seasonal factors, geopolitical uncertainty and large IPO launches could contribute to periods of weakness.
“We could see some weakness at some point over the summer months, and maybe that would fit into what’s happening in the Middle East as well,” he said.
Market Pullbacks Could Create Long-Term Value
Despite warning about near-term risks, Brice emphasized that any correction should be viewed within a broader investment context.
He said that market declines linked to new share issuance or geopolitical uncertainty could ultimately provide attractive buying opportunities for investors willing to look beyond short-term volatility.
The upcoming listings are expected to test investor appetite as some of the world’s most valuable AI and technology companies seek public-market capital.
Employment Data Could Offer Near-Term Support
Brice said stronger-than-expected U.S. labor market figures could help support sentiment in the near future.
However, he cautioned that any economic resilience may come under pressure if disruptions to global energy flows continue for an extended period.
In particular, he highlighted the importance of developments surrounding the Strait of Hormuz, one of the world’s most critical energy transit routes.
Oil Markets Remain Central to the Outlook
Crude prices have risen sharply amid ongoing tensions between Washington and Tehran, with Iranian ports facing restrictions and shipping through the Strait of Hormuz remaining heavily disrupted.
Brice noted that tightening supply conditions are increasingly affecting a wide range of industrial products beyond oil itself.
“Inventories are being run down at a rapid pace, not just in physical crude, but also across petrochemicals or urea and different inputs into the production cycle around the world,” Brice said.
According to Brice, sustained inventory depletion across key commodities and industrial inputs could eventually become a more significant challenge for global growth, inflation and overall market stability.
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