Deutsche Bank strategists report that US equities experienced modest losses as oil prices continued to rise, with the S&P 500 declining by 0.06% from its all-time high reached on Friday. The NASDAQ fell by 0.32% and the Russell 2000 dropped 0.56%, while energy (+4.63%) and health care (+1.68%) sectors outperformed and helped limit the S&P 500’s overall decline. Chipmakers led the losses, with the Philadelphia Semiconductor Index falling 2.94% after a 9.25% rebound the previous week [1].
In notable AI and chipmaker news, Intel shares dropped 4.06% as the company announced plans for a $15 billion new stock offering, its first share sale since 1971. Nvidia shares also declined by 2.86% on the day, but after the US market close, Nvidia revealed it is collaborating with several investment firms to mobilize $500 billion to create dedicated pools of capital for Nvidia customers at attractive rates [1]. Following the softer US close, futures for the S&P 500 (+0.14%) and NASDAQ 100 (+0.37%) edged higher [1].
European markets showed more resilience, with the STOXX 600 inching up 0.03% to a new record, marking six consecutive gains for the first time since May. The DAX and CAC 40 also reached new records, rising 0.02% and 0.13% respectively, while the FTSE 100 slipped by 0.35% [1].
In Asia, the KOSPI rose by 1.46%, mainland China markets remained broadly flat, and the Hang Seng declined by 0.60%. Japanese markets were closed for a public holiday [1].
CONCLUSION
Despite headwinds from rising oil prices and declines in chipmaker stocks, global equities demonstrated resilience, with European indices reaching new records and US futures pointing to a potential rebound. Key developments in the semiconductor sector, including Intel's planned $15 billion share sale and Nvidia's $500 billion capital initiative, were notable market-moving events. Overall, risk sentiment remains unusually robust for early August.