S&P 500: How did the tech rally counter the post-CPI sell-off? – Deutsche Bank

A sharp recovery in US equities, powered by AI-linked and semiconductor stocks following CoreWeave’s strong earnings, is in focus in Deutsche Bank’s Early Morning Reid. Surges in the Philly Semiconductor Index and Nasdaq took the S&P 500 above its pre-midterm levels once more. The rebound came under renewed pressure, however, as after-hours news concerning Nvidia’s CEO triggered an 8.6% fall in its shares, dragging Nasdaq and S&P futures lower again.

Can AI and chip stocks sustain gains amid volatility?

"The crazy whipsawing post midterms continued yesterday as after the post-CPI selloff on Tuesday, markets bounced back again over the last 24 hours, as the positive momentum from CoreWeave’s (+24.71%) earnings drove a sharp rally in tech stocks."

"So the Philly semiconductor index (+5.66%) helped drive the S&P 500 (+1.31%) back above its levels before the midterm elections. Who said markets didn't always go up after midterms! And over in Europe, both the STOXX 600 (+0.72%) and the DAX (+1.20%) moved up to fresh records."

"However, the current volatility in the tech trade continues this morning as the WSJ reported after the US closing bell that the Nvidia board are planning to oust CEO Jensen Huang after the last few days of stories around him have surfaced. Their stock fell -8.6% in after-hours trading, which has pushed Nasdaq (-1.09%) and S&P (-0.45%) lower. So a big deal for one of the largest companies in the world."

"Those upbeat earnings from CoreWeave were a boon for tech and chip stocks, with the Philly Semiconductor Stock Exchange up +5.66%, while the Nasdaq Composite (+1.6%) also climbed."

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