Deutsche Bank analysts report a mixed environment for US equities, highlighting the S&P 500's rebound driven by broad participation across most sectors, even as chipmakers lagged following Broadcom's disappointing AI guidance [1]. The S&P 500 rose by 0.41%, paring back previous losses and positioning itself for a rare tenth consecutive weekly gain, a feat not seen since 1985 [1]. However, futures were softer ahead of the morning session, indicating some caution in the market [1].
Market breadth improved significantly, with 363 advancers in the S&P 500—the highest since April—and the equal-weighted S&P 500 climbing 0.79% to reach an all-time high [1]. Despite this broad rally, semiconductor stocks were notably weak. Broadcom shares dropped 12.59%, making it the second-biggest decliner in the index after its earnings report the previous day [1]. The Philly semiconductor index fell by 2.15%, although it recovered from an intraday low of -6.29% [1].
Risk sentiment was supported by lower oil prices and yields, which helped offset the drag from chipmakers and the decline in Bitcoin. Bitcoin fell 2.06% to $63,575, marking its lowest level since early February [1].
Analysts note that while the S&P 500 is marginally higher for the week and continues to show resilience, the weakness in the semiconductor sector—particularly following Broadcom's results—remains a concern for risk assets [1].
CONCLUSION
The S&P 500 is on track for a historic tenth consecutive weekly gain, buoyed by broad sector strength despite significant weakness in chipmakers following Broadcom's disappointing AI guidance. While risk sentiment remains supported by lower oil and yields, the semiconductor sector's performance and Bitcoin's decline highlight ongoing market challenges. Investors are watching closely as the index attempts to sustain its momentum.