Equities: Flat close with sector rotation – Deutsche Bank

Deutsche Bank strategists note that United States (US) equities finished virtually flat, as strength in technology and semiconductor stocks offset a sharp decline in financials. The NASDAQ reached a fresh all-time high, while concerns that AI could pressure margins and fees weighed on financial shares. European equities were mostly modestly higher, while Asian markets traded mixed and US equity futures remained near flat.

Tech strength and financials weakness

"Despite the volatile newsflow, equities ended the day little changed, with the S&P 500 down a mere -0.001%. Tech stocks saw a better performance, with the NASDAQ (+0.45%) moving up to a fresh all-time high."

"That included further strong gains for chip stocks, with the Philly semiconductor index (+2.06%) posting a 6th consecutive gain. Trump himself also commented on AI in his speech at the UN, terming it “super intelligence” and rejecting attempts to control it. By contrast, financials (-1.98%) led the declines within the S&P 500, which appeared to be driven by concerns that AI could erode margins and fees."

"In Europe, equities mostly saw modest gains, with the Stoxx 600 (+0.13%), CAC 40 (+0.20%), and DAX (+0.02%) rising. The exception was the UK’s FTSE 100, which fell -0.29%."

"Turning to Asia, markets are mixed this morning. As I check my screens, the KOSPI (+0.45%) is posting a moderate gain, with Japan’s markets still closed until tomorrow. Elsewhere, Chinese equities are under pressure, with the Hang Seng (-0.74%) underperforming both the CSI 300 (-0.50%) and the Shanghai Composite (-0.36%). Meanwhile, Australia’s S&P/ASX 200 (+0.08%) is little changed. US equity futures are also trading near flat, with those on the S&P 500 up +0.09%."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)