Equities: Rising yields weigh on stocks despite tech support - Deutsche Bank

Deutsche Bank strategists warn of declining global equities amid rising bond yields and oil prices, despite a temporary recovery in the S&P 500 and some tech sector support. The S&P 500 fell for the third day in a row, while European indices experienced broader declines. Performance varied across sectors, with utilities and materials lagging and technology names providing some relief.

In the US, equities recovered most of their decline following a Reuters report, but the S&P 500 still ended the day lower for the third consecutive session. Almost two-thirds of the S&P 500 saw declines, led by utilities and materials. Europe saw more consistent declines, with the STOXX 600, DAX, and CAC 40 all falling. Asian equities were heavily impacted by holiday-shortened trading, with markets in China and South Korea closed, while Japan's Nikkei finished 1.24% higher and Australia's S&P/ASX 200 down 0.53%.

Oil prices rose amid geopolitical risks, leading to higher US bond yields and inflation concerns. The US Dollar strengthened as the Federal Reserve's hawkish stance and oil-driven inflation fears pushed yields to multi-year peaks. Gold, meanwhile, remained stagnant near its weekly low due to a bearish market outlook.