There's still room for rotation into tech, Deutsche Bank says. Here's why
There is still room to run with regards to rotation in tech stocks due to outperformance in the sector, Deutsche Bank said.
Deutsche Bank's Early Morning Reid notes that higher US yields and oil prices are negatively impacting equities, with the S&P 500 slipping nearly 0.8%. The Magnificent 7 suffered significant declines, while defensive sectors like consumer staples and healthcare posted modest gains. Risk assets faced growing pressure as US and European HY spreads reached their widest levels since April.
Major indices across the Atlantic trended lower, with the S&P 500 falling by -0.77% and the Magnificent 7 dropping by -1.72%. US IG and HY credit spreads widened to levels not seen since April, while European IG and HY credit spreads also saw notable increases. AUD/USD retreated to its lowest level in nine weeks, and USD/JPY struggled to capitalize on overnight momentum, consolidating around 157.50 in the Asian session.
High expectations for further US rate hikes and oil price concerns continue to drive gold prices to multi-year lows.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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