Deutsche Bank strategists observed a strong risk-on sentiment in US equities, primarily fueled by a rebound in technology stocks. The 'Magnificent 7' group of tech giants outperformed the broader market, rising by 2.58%, which enabled the S&P 500 to break a five-day losing streak with a gain of 1.18% [1]. This rally has positioned the S&P 500 on the cusp of its best quarterly performance in six years, a period last seen during the sharp recovery from the pandemic slump [1].
Among the standout performers, Tesla surged by 8.46%, Alphabet climbed 4.79%, and Amazon advanced 3.20% [1]. The Philadelphia Semiconductor Index also rebounded, gaining 3.83% after experiencing its worst week since the post-Liberation Day sell-off in April [1]. While the broader US market was more mixed, both the equal-weighted S&P 500 and the small-cap Russell 2000 managed to inch up to new record highs, rising 0.18% and 0.01% respectively [1].
In contrast, European equities remained largely unchanged, with the STOXX 600 posting a marginal gain of 0.04%. However, European futures indicated a more positive start to the next session, up around 0.6% early in the morning [1].
No forward-looking statements or analyst opinions beyond the Deutsche Bank strategists' observations were provided in the article [1].
CONCLUSION
A robust rebound in US technology stocks has propelled the S&P 500 toward its strongest quarterly performance in six years, with notable gains from Tesla, Alphabet, and Amazon. While European equities were flat, US market sentiment remains positive heading into the quarter's end.