-Danske Research Team highlights a strong rebound in global equities, led by US technology and semiconductor names, with Intel, Qualcomm and Micron up double digits. Asian markets, including Korea and Shenzhen, also rallied, while European equities lagged due to sector composition. General cyclicals and small caps gained on reassuring US ceasefire comments.

Tech leadership and cyclical catch-up

"Equities rebounded on Tuesday. S&P 500 0.8% and small cap Russell 2000 1.8%. Tech continued to lead the market, but preference shifted from software to semis. Intel, Qualcomm and Micron all surged, up 11-13%."

"Semi heavy Korea is surging 6% this morning (70% ytd, 180% LTM) and Shenzhen 2.5%, following the holiday yesterday. While Stoxx 600 gained 2% the last month, S&P 500 rallied 10%. Sector composition explains this underperformance, not energy prices alone."

"So, tech continued in jaw dropping speed, with Asia and US the prime beneficiaries. However, general cyclicals also rebounded yesterday, along with small caps, following reassuring comments about the ceasefire from the US admin."

"Regional banks, materials and industrials were up between 1-2%. Stoxx 600 gained 0.7%"

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