Equities: AI trade unwind weighs on tech – Danske Bank
Danske Bank’s Danske Research Team highlights that US equities saw a sharp AI-related selloff on Friday, with energy outperforming technology by more than 4 percentage points. The SOX index logged an eighth straight decline, its longest losing streak since 2006, underscoring concentrated weakness in AI names. Early Monday, sentiment looks more constructive with US futures, led by Nasdaq, trading…
As the 39th anniversary of Black Monday coincides with a sharp sell-off in US equities, Deutsche Bank strategists highlight renewed volatility. The S&P 500 experienced a late Friday decline before rebounding, while Nasdaq futures have made up most of their losses. Concerns are centered around AI-related stocks and semiconductors, with credit markets showing distress in those sectors.
The Philadelphia semiconductor index and Nasdaq both declined significantly over the past week. CoreWeave's stock price plummeted -25.21% last week, and their 5-year CDS increased by 225 basis points to 1128bps. Oracle's shares dropped -9.31%, with a 44bps increase in their 5-year CDS. Asia's markets began the week relatively stable, with most Asian indices trading higher.
However, Indonesia's benchmark stock index has fallen over 16% in the last two sessions due to concerns over an MSCI downgrade. AUD/USD rallied for the second consecutive day, while USD/JPY remained defensive near 158.00. Gold prices have held gains but are still below the $4,200 level.
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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