Deutsche Bank reports that global equities, led by the S&P 500 and NASDAQ, have fallen to one‑month lows as higher Oil prices and US‑Iran tensions revive stagflation concerns. The bank notes a rotation out of growth and cyclicals into defensives, with US and European indices under pressure and volatility indicators such as VIX moving higher.

US stocks retreat as defensives outperform

"With signs of a near-term resolution fading, investors grew more concerned about the stagflationary scenarios again, with bonds and equities selling off on both sides of the Atlantic."

"Indeed, the S&P 500 (-1.62%) fell to a one-month low, with tech stocks including the NASDAQ (-1.98%) and the Magnificent 7 (-2.23%) leading the way."

"The selloff was a classic rotation out of growth and cyclicals into defensives as Telecoms (+2.25%), Food & Bev (+1.98%) and Consumer Staple Retail (+1.86%) were the best performing S&P 500 industry groups, while Autos (-3.92%), Capital Goods (-3.88%), and Semiconductors (-3.76%) were the biggest laggards."

"And over in Europe, it was much the same story, with the STOXX 600 (-0.08%) down for a 4th consecutive session to a three-week low."

"And over in Europe, it was much the same story, with the STOXX 600 (-0.08%) down for a 4th consecutive session to a three-week low."

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