Equities: Tech losses mask broader market resilience - Deutsche Bank
Jim Reid's Macro Strategy note highlights a sharp reversal in US equities, as the S&P 500 erased early gains to close 0.51% lower.
Deutsche Bank's Jim Reid's Macro Strategy note highlights a surprising resilience in the U.S. equities market despite significant losses in the technology sector. The S&P 500 fell 0.51% to end the day, while the Nasdaq 100 entered correction territory. Apple's cautious margin outlook contributed to broader market concerns. However, the rally in equities was short-lived, with chipmaker sentiment deteriorating.
The tech sector suffered due to a sharp decline in the semiconductor index, which in turn pulled the Nasdaq 100 down into correction territory. Despite this, more than two-thirds of the S&P 500 advanced, showing the broader market's strength. Apple's mixed earnings results, including a projected margin narrowing, led to a 3% drop in its stock price after hours.
Asian equity markets varied, with some showing resilience while others remained mixed, particularly in light of upcoming U.S. midterm elections. The Australian dollar slipped to a two-week low, while the Japanese yen gained support from potential diplomacy developments and a looming U.S. midterm election. Gold prices fell further, pressured by stronger economic data and hawkish Federal Reserve expectations.
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