The planned stock market debuts of Anthropic, OpenAI and SpaceX (NASDAQ:SPCX) could create short-term pressure on financial markets as investors absorb a large volume of new equity offerings, according to Steve Brice, Global Chief Investment Officer for Wealth Solutions at Standard Chartered.
Speaking on CNBC’s “Access Middle East” on Tuesday, Brice said the scale of the upcoming listings may create temporary challenges for market participants.
“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.
While he remains constructive on the broader outlook, Brice indicated that he is taking a more cautious stance in the near term.
Summer Weakness Remains a Possibility
Brice noted that markets could experience periods of volatility or weakness during the coming months, particularly as investors navigate both the IPO pipeline and ongoing geopolitical developments.
“I isn’t ‘super, super bullish at this point.’”
“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.
Despite those concerns, Brice suggested that any market pullback could eventually present opportunities for long-term investors.
Potential Buying Opportunities Beyond Near-Term Volatility
According to Brice, temporary market weakness should not necessarily be viewed negatively by investors with a longer investment horizon.
Over time, he said, any decline triggered by IPO-related selling pressure or macroeconomic uncertainty could create attractive entry points into the market.
The comments come as investors prepare for what could be one of the largest periods of technology-related public offerings in recent history, with several AI-focused companies expected to seek valuations measured in the hundreds of billions of dollars.
U.S. Economic Data Could Support Sentiment
Brice also pointed to upcoming U.S. employment figures as a potential source of support for financial markets.
He said expectations for relatively healthy labor market data could help sustain investor confidence in the near term, although that support may prove temporary if disruptions to global energy supplies persist.
According to Brice, one key risk remains the continued closure of the Strait of Hormuz.
Should the strategic shipping route remain inaccessible through the end of the summer, economic conditions could deteriorate as energy-related pressures intensify.
Energy Supply Concerns Remain a Major Risk
Oil prices have surged amid the ongoing standoff between the United States and Iran, with the Trump administration maintaining a blockade on Iranian ports while Tehran continues to keep the Strait of Hormuz closed.
Brice warned that the impact extends well beyond crude oil markets.
“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.
The depletion of inventories across multiple industrial supply chains could eventually place additional pressure on economic growth and inflation, making energy markets a critical factor for investors to monitor in the months ahead.
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