Deutsche Bank’s Early Morning Reid describes a mixed picture for US equities. The S&P 500 index slipped 0.22% as chip stocks sold off sharply, yet the equal‑weighted S&P 500 rose 0.24% to a new record. Futures on the S&P 500 are modestly positive, and individual names like Meta rallied strongly on cloud infrastructure plans, highlighting rotation beneath headline weakness.

Semiconductor drag but breadth improves

"Those glimmers of positivity have been reflected overnight, where both US and European equity futures have stabilised. For instance, futures on the S&P 500 (+0.09%) and the DAX (+0.27%) are both in positive territory. And even though many indices in Asia have lost ground this morning, they’ve recovered from their lows earlier in the session. "

"Indeed, the Nikkei is down -1.61%, but it had been down -2.55% in the first hour of trading. Similarly, the CSI 300 is down -1.85%, but had been down -2.45% earlier on. And several indices are still higher, including the Hang Seng (+1.19%), and Japan’s TOPIX index (+0.63%)."

"When it came to equities, the dovish momentum was countered by a fresh selloff in chip stocks, which saw the Philly semiconductor index fall -6.27%. So that dragged down US equities more broadly, with the S&P 500 (-0.22%) pulling back after gains on Monday and Tuesday. "

"Nevertheless, there were still broader gains, and the equal-weighted S&P 500 (+0.24%) hit a new record. Moreover, there was a big jump for Meta (+8.81%), which was the third-strongest performer in the S&P 500 yesterday, after Bloomberg reported they were developing plans for a cloud infrastructure business. However, European equities struggled in the meantime, with the STOXX 600 (-0.38%) pulling back as well."

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