Equities: Rally on dovish Fed tone – Deutsche Bank

Deutsche Bank reports that US equities saw a rally, driven by the S&P 500, which posted its best day in nearly a month. This surge was fueled by dovish remarks from Fed Governor Waller, which countered stronger US data. The index moved close to record highs, aided by the performance of the "Magnificent 7" stocks and lower energy prices.

Futures indicate a cautious continuation of this upward trend. For US equities, the mix of positive economic data and Waller's comments provided decisive support. This led to the S&P 500 (+1.06%) posting consecutive gains for the first time in three weeks, bringing the index back within 1% of its record high from the previous month.

The Magnificent 7 (+2.38%) played a key role, reaching a 3-month high with their best day in over a month. However, the rally was broad-based, with more than two-thirds of the index moving higher. US equities also experienced a recovery, with the STOXX 600 stabilising after three consecutive declines, alongside gains for the DAX, CAC 40, and FTSE 100.

Asian equity markets generally followed the tech trend, with the Hang Seng, KOSPI, and Nikkei all showing gains. Mainland Chinese markets posted modest gains, while Australian stocks were an exception, with the S&P/ASX 200 declining slightly. US and European equity futures were up less than 0.1%. US and European equity futures were all up less than a tenth of a percent, indicating cautious optimism about the market's next moves.