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.
AI and semis fuel equity rally
"Markets have put in a very strong performance over the last 24 hours, with all the main risk factors fading into the background."
"So in turn, that meant the S&P 500 (+2.35%) built on Friday’s recovery and posted its strongest day since the Iran ceasefire announcement in April."
"The index is now "only" down -0.25% in the four business days since the midterms."
"This strength was clearest in the most AI-exposed assets, which continued to recover from last Thursday’s slump."
"So all round, investors became a lot more optimistic on the near-term outlook, and the VIX index (-5.72pts) posted its sharpest daily decline since April 2025 when equities rebounded from their post-Liberation Day sell-off."
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