S&P 500: Record highs with tech leadership – Deutsche Bank

Deutsche Bank analysts highlight that the latest tech boom has driven the S&P 500 back to record highs, with global equities supported by easing stagflation fears and solid US data. They note that US equities have moved from the bottom quartile to the middle of global performance tables, while chipmakers and the Magnificent 7 continue to lead gains.

US benchmarks extend record-setting run

"But then again, despite the biggest geopolitical shock in several years, plenty of assets have appeared unfazed. For instance, the latest tech boom has pushed the S&P 500 back to record highs. But it’s important to contextualise this."

"Markets have recovered some poise over the last 24 hours, with global equities and bonds advancing, alongside a new record for the S&P 500 (+0.81%)."

"For equities it was much the same story, as easing fears around stagflation and strong data helped to propel the major indices higher. That was clearest in the US, with the S&P 500 (+0.81%) up to a record high, alongside new records for the NASDAQ (+1.03%) and the Magnificent 7 (+0.26%)."

"Once again, chip stocks led the gains, with the Philly semiconductor index rising +4.23%, extending its gain since March 30 to a stunning +53.7%."

"Yesterday’s other major narrative that has continued into Asia hours is one of optimism on chipmakers. This follows strong results from AMD, whose shares spiked by +16% in after-hours trading, as well as Super Micro Computer after the US close."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)