Equities: Flat close with sector rotation – Deutsche Bank
Deutsche Bank strategists note that United States (US) equities finished virtually flat, as strength in technology and semiconductor stocks offset a sharp decline in financials.
Deutsche strategists report US equities closing virtually flat Monday, with technology and semiconductor stocks offsetting financial declines. The NASDAQ reached a new all-time high, while financial shares suffered amid concerns that AI could strain margins and fees. European equities were mostly modestly higher, while Asian markets traded mixed and US equity futures remained flat.
Despite volatile news, equities ended little changed, with the S&P 500 down just 0.001%. Tech stocks performed best, with the NASDAQ (+0.45%) hitting a fresh high, led by chip stocks with the Philly semiconductor index (+2.06%) posting a 6th consecutive gain. Financials (-1.98%) led declines within the S&P 500, driven by fears that AI could hurt margins and fees.
European equities saw modest gains, with the Stoxx 600, CAC 40, and DAX rising. The UK FTSE 100 declined -0.29%. Asian markets were mixed, with the KOSPI (+0.45%) gaining modestly, Japan's markets closed, and Chinese equities under pressure. Australia's S&P/ASX 200 was flat. US equity futures traded near flat. The FXStreet Insights Team reports AUD/USD under pressure, testing 0.7100 in the Asian session, as traders await the Trump-Xi summit for crucial insights.
USD/JPY hovered near two-week highs, while the Fed's hawkish stance supports the dollar. Gold struggled to capitalize on a previous day's rebound and faced fresh supply. Cardano (ADA) extended gains above $0.262 after a 14% rally this week, supported by rising Open Interest and signs of whale accumulation. If buying pressure persists, ADA may target higher levels.
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