Deutsche Bank analysts report that S&P 500 futures are rebounding after the index suffered its worst day since late March, pressured by Iran-related geopolitical risks and a more hawkish Federal Reserve (Fed) outlook. Despite strong US data and some upbeat earnings, equities fell broadly, with Energy the only major sector to advance on higher Oil prices.

Futures bounce after broad decline

"Trump’s ceasefire extension has led to some recovery in markets overnight after bonds and equities lost ground on both sides of the Atlantic yesterday."

"S&P futures (+0.51%) are seeing a sizeable rebound, on course to reverse most of the -0.63% S&P 500 decline yesterday, which marked the first back-to-back decline for the index in three weeks."

"Despite the stronger data, US equities struggled yesterday, as Iran fears and the prospect of a more hawkish Fed served to dampen sentiment."

"So the S&P 500 gave up its initial gains at the open to close -0.63% lower."

"This marked the S&P 500’s worst day since March 27, with a broad-based fall that saw two-thirds of the index lower on the day."

"Energy (+1.31%) was the only major sector group to advance. The decline also came despite some positive earnings, including from UnitedHealth Group (+6.96%) as they raised their outlook."

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