US equities: Recovery continues after post-election selloff – Rabobank

Rabobank's RaboResearch Global Economics & Markets reports that the S&P 500 has rebounded about 3% to pre-November 4 levels after a sharp 4.4% post-Midterm election drop, while the Nasdaq gained 5% over two sessions, supported by an 11% rise in the Philadelphia Semiconductor Index. The bank cautions that structural risks to the US AI infrastructure buildout persist.

S&P 500 and Nasdaq rebound

"After collapsing 4.4% in one day last week following the US Midterm elections, the S&P 500 is starting to show signs of recovery, having moved 3% higher, back to pre-November 4 levels. Despite the unfortunate headlines surrounding Jensen Huang, the Nasdaq also made a strong recovery, having moved 5% higher over the past two sessions, supported by the Philadelphia Semiconductor Index, which managed to work its way more than 11% higher."

"But the risks facing the US AI infrastructure buildout remain."

"Unfortunately, this also sets the US behind as it seeks to reindustrialize, leaving the manufacturing gap between the US and China harder to close. But equities did well yesterday, so the market seems content to deal with these problems later."

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