Deutsche Bank strategists note that US equities stabilised after Friday’s slump, with the NASDAQ and semiconductor stocks leading the rebound. However, the recovery was narrow, as the S&P 500 recouped only a small portion of its prior losses, most constituents fell, and the Mag-7 lagged as Apple declined following a muted response to its latest AI platform.

Semis lead partial recovery in US

"One relatively positive area yesterday was US equities, with the major indices stabilising after Friday’s slump. The recovery was particularly visible in segments that slumped the most on Friday, with the NASDAQ up +0.86%, whilst the Philly semiconductor index rose +5.61%, recovering about half of its -10.26% fall last Friday."

"However, the broader equity mood was more cautious, and the S&P 500 (+0.30%) recovered only a small fraction of Friday’s -2.64% decline. Indeed, almost two-thirds of S&P constituents were lower on the day, with tech and energy the only sectors to post clear gains."

"And the Mag-7 (-0.06%) struggled to follow the recovery in chipmakers, with Apple (-1.89%) leading on the downside amid a lukewarm reaction to the latest generation of its AI platform."

"The equity weakness was clearer in Europe. In part, that was because they’d closed before the worst of the US losses on Friday, so there wasn’t the same bounce back potential. But they were also more exposed to the oil price increase, so the STOXX 600 (-0.15%) fell for a second consecutive session. There were similar moves across Europe, including for the DAX (-0.58%) and the CAC 40 (-0.23%), but Italy’s FTSE MIB (+0.63%) was the main outperformer."

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