S&P 500: AI momentum drives fresh record highs – Deutsche Bank
Deutsche Bank’s Early Morning Reid notes that US equities extended gains as stagflation fears eased with lower Oil prices and AI-related optimism. The S&P 500, Nasdaq and Mag 7 all hit new highs, supported by strong performance from chipmakers such as AMD, while US high-yield credit spreads tightened to their narrowest level in three months.
US equities surge on AI and oil drop
"With fears of a stagflationary shock easing again, multiple equity indices like the S&P 500 (+1.46%), Nasdaq (+2.02%) and the Mag 7 (+2.00%) roared to new highs."
"Moreover, continued momentum from the AI trade helped propel risk assets to new highs as well, with the S&P 500 (+1.46%) at another record."
"Within the rally, chipmakers continued to outperform, driven by strong earnings from AMD (+18.61%) after it reported strong demand for AI agents."
"So this powered the Philly semiconductor index up +4.48%, extending its YTD gain to 62%."
"The positive mood was also visible in other risk assets, with US HY credit spreads tightening by 4bp to their narrowest level in three months."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
CFTC Prepares U.S. Market for Mass Tokenization and Round-the-Clock Trading
General Motors stock rallies 2.56%, yet momentum stays stuck below key EMAs
Seven UK banks complete live tokenized sterling deposit transactions
Small models "steal" demand for cloud computing power, trillion-dollar data center capital expenditure faces a test
A Jefferies report points out that improvements in small language model performance and declining costs may lead enterprises to shift AI deployment from the cloud to localized solutions, impacting investments in hyperscale data centers. With falling server utilization rates and a mismatch between the massive capital expenditures of tech giants and actual computing power demand, some data centers risk becoming "stranded assets." Although AI demand persists, the scale and returns of centralized computing power are facing reassessment.
Crypto prices
More
