Deutsche Bank’s Jim Reid highlights that the S&P 500 closed within half a percent of its record high, supported by a rebound in software and broader tech stocks as AI fears eased. Nvidia, the NASDAQ and the Magnificent 7 all advanced, while US IG and HY spreads tightened from year‑to‑date wides. However, equal‑weighted S&P performance was flat, and homebuilders lagged sharply.
AI anxiety eases, breadth narrows
“There were no streaming eyes for the markets yesterday though as we saw another decent session, with the S&P 500 (+0.81%) closing within half a percent of its record high last month, whilst the STOXX 600 (+0.69%) hit a new all-time high.”
“That was primarily driven by easing fears around AI, which meant that software and other tech stocks continued their rebound from Monday’s sell-off.”
“Indeed, software stocks in the S&P were up +3.05% on the day, and the VIX index (-1.62pts) fell to a two-week low of 17.93pts.”
“Ahead of those results, it had been a decent session on both sides of the Atlantic, with Nvidia (+1.41%) itself up to a 3-month high.”
“However, the breadth of equity gains was narrower than on Tuesday, with the equal-weighted S&P essentially unchanged (+0.03%).”
(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-tech-rebound-lifts-index-near-highs-deutsche-bank-202602260826
