Deutsche Bank’s Jim Reid notes that higher Oil prices and hawkish US inflation data created a challenging backdrop for equities. The S&P 500, Nasdaq Composite and Magnificent 7 all declined but recovered from deeper intraday losses, while defensive sectors such as healthcare and consumer staples outperformed. European indices, including the DAX and CAC 40, also weakened on Iran and Oil concerns.
US and European stocks retreat
“The hawkish inflation data combined with the Middle East conflict led to a challenging backdrop for equities.”
“However, this also wasn’t helped by chipmakers and tech selling off with the Philly Stock Exchange Index falling back by -3.01%, although well off the -6.75% intra-day lows.”
“Elsewhere, the S&P 500 (-0.16%), Nasdaq Composite (-0.71%) and Magnificent 7 (-0.49%) also fell but again bounced off the lows.”
“The mood was more challenging in Europe, with multiple indices declining with the Iran and oil fears.”
“That included the DAX (-1.62%), CAC 40 (-0.95%) and Stoxx 600 (-1.01%), although the FTSE 100 (-0.04%) losses were not as steep.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/sp-500-equities-pressured-by-oil-and-inflation-deutsche-bank-202605130804
