S&P 500: AI and energy shocks weigh on equities – Deutsche Bank
Deutsche Bank’s Early Morning Reid describes a broad risk-off session for US equities, with the S&P 500 and NASDAQ posting their worst declines in months as AI-related names and higher Oil prices pressured sentiment. Semiconductor and AI-exposed stocks sold off sharply, while defensive sectors outperformed. Equal-weighted S&P 500 gained, highlighting rotation away from mega-cap growth amid falling US yields.
US stocks hit by AI concerns
"As all that was happening, yesterday also brought a fresh wave of concern around AI-driven growth, reversing some of the optimism from earlier in the week. So it was a rough session for several of the most affected names, and the Philly semiconductor index (-6.72%) had its worst day since June, whilst CoreWeave’s share price (-10.06%) fell to its lowest since May 2025."
"Put together, this all helped drive the broader indices lower, with the S&P 500 (-1.21%) posting its worst daily performance since July, whilst the NASDAQ (-2.60%) had its biggest decline since June."
"However, note that the main defensive sectors rallied strongly, with consumer staples (+3.11%) and utilities (+1.98%) leading the way as two thirds of S&P 500 constituents moved higher, helped by the fall in yields."
"This also marked the biggest outperformance of the equal-weighted S&P 500 (+0.77%) over the market cap index since July 2024."
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