Middle market business conditions and AI adoption (with Carol Massar, Tim Stenovec)

Wendy Stewart, President of Global Commercial Banking at Bank of America, reports that middle market companies are driving growth, hiring, and innovation. M&A activity is strong, used for growth, supply chain management, and global expansion. Globalization is evolving, not dead. AI adoption is a key theme, with clients focusing on customer experience, frontline enablement, process improvement, and efficiency. Most sectors show strength, with talent being a challenge in manufacturing and capital costs in healthcare.

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Bank of America 8.5
Investment Bank $3040.00B
Wendy Stewart 8.0

Middle market business conditions and AI adoption (with Carol Massar, Tim Stenovec)

ndx

Strong middle market activity and AI adoption are positive for the broader economy and tech sector, but Stewart's comments are more about Main Street than Wall Street, warranting a cautious view.

rut

Middle market companies are a real driver of the economy right now. They're driving growth, they're driving hiring, and they're driving innovation.

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no reliable edge (random outcomes)

12/11/2025 9:01:11 PM	medium term cautious up	21 days later	-1.69%	-0.85%

Asks about lending activity, business activity, and concerns in the middle market.

Carol Massar
Wendy Stewart

Middle market companies are a real driver of the economy: driving growth, hiring, and innovation. This is driving deposits, lending, and strategic activity at BofA. M&A is a big opportunity, used to grow, manage supply chains, cut costs, and expand globally.
Asks what is driving M&A, specifically if it's family businesses without heirs.

Tim Stenovec
Wendy Stewart

That's part of it, but many private companies are run by 3rd-5th generations with good succession planning. Some sell a portion for liquidity, others acquire for geographic or sector growth, and others solve supply chain challenges.
Asks if globalization is dead based on client activity.

Carol Massar
Wendy Stewart

Globalization is evolving. Clients did friendshoring/reshoring but now must be flexible due to geopolitical uncertainty. They are diversifying and leaving opportunity in one region to protect ecosystems in another (e.g., Europe).
Asks about the US-Canada business relationship.

Carol Massar
Wendy Stewart

Relationships are strong. Clients are pragmatic, not political. There is a lot of back and forth between US and Canada, and the US is an important market for Canadian companies.
Asks about sector strengths and weaknesses.

Tim Stenovec
Wendy Stewart

Most sectors are strong by design. Manufacturing has growth but talent is a challenge. Healthcare has growth but high capital investment. Every sector has different opportunities and challenges.
Asks if there are bigger themes than geopolitics for the middle market.

Carol Massar
Wendy Stewart

Yes, AI. Clients are using it for: 1) better customer experience, 2) enabling frontline employees, 3) improving process, 4) driving efficiency. They need to get data in order first. BofA uses a similar approach.

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