S&P 500: Post-CPI sell-off offset by tech rally – Deutsche Bank

Strong CoreWeave earnings fuelled a sharp rebound in US equities. Deutsche Bank’s Early Morning Reid highlights AI-linked and semiconductor shares as the leaders. Gains in the Philly Semiconductor Index and Nasdaq pushed the S&P 500 above its pre-midterm levels again. The recovery faltered after hours, however, as news concerning Nvidia’s CEO sent its shares down 8.6%, dragging Nasdaq and S&P futures lower once more.

AI and semiconductor shares lead volatile equity rebound

"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.)