S&P 500: Tech rebound drives strong gains – Deutsche Bank
Deutsche Bank’s Jim Reid highlights a strong rebound in US equities, with the S&P 500 posting its best day since the Iran ceasefire announcement in April. The move was led by AI-related and semiconductor names after positioning had turned underweight. The index has almost fully recovered its post-midterm losses, while volatility, as measured by the VIX, fell sharply.
Deutsche Bank's US economists anticipate a significant deceleration in US CPI for October, following September's robust reading. They project both headline and core inflation to settle at 0.20% month-on-month. This forecast is crucial, as it is the final CPI release before the upcoming Federal Reserve meeting. Markets will closely monitor the implications for personal consumption expenditures (PCE) inflation.
A key point to note is the absence of a year-on-year figure, caused by last year's government shutdown. This anomaly occurred as the October 2025 inflation level was not calculated, leaving no basis for comparison with the current data. The primary focus for the coming days will be the US CPI release, along with the NFIB's small business optimism index for October.
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