Deutsche Bank analysts describe a broad risk-off session where the S&P 500 logged a third straight decline, led by heavy losses in software and mega-cap tech. AI disruption concerns hit logistics and commercial real estate, while financials and equal-weighted indices also retreated, signalling a widening selloff beyond the Magnificent 7 and recent market leaders.

Broader equity pullback led by technology

"Overall the S&P 500 (-1.57%) slid to a third consecutive decline."

"Once again, software stocks in the index were one of the worst hit, falling -1.49%, but it was a rough day for tech in general, with the Magnificent 7 (-2.24%) and the NASDAQ (-2.03%) both losing significant ground."

"Tech stocks were in the driving seat of yesterday’s selloff, although unlike some sessions recently, the move was a broad-based one as investors reckoned with the AI-led disruption of various industries."

"S&P Financials (-1.99%) also saw a sharp decline, as the KBW Bank Index (-3.21%) posted its worst performance since October."

"There were signs of the selloff broadening out, with the equal-weighted S&P 500 (-1.31%) falling back from its record high the previous day, whilst Europe’s STOXX 600 (-0.49%) also fell back from Wednesday’s record."

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