Equities: Tech rebound lifts futures – Deutsche Bank
Deutsche Bank strategists report that Micron’s strong revenue outlook has reignited hopes for AI-driven growth, boosting NASDAQ 100 and S&P 500 futures after recent losses. While the Mag 7 remains in correction territory, nearly two-thirds of S&P 500 constituents advanced and the equal-weighted index rose. They highlight a tentative recovery in US equities following three consecutive S&P 500 declines.
Micron-driven AI optimism supports rebound
"Markets are in a buoyant mood this morning, with Brent crude oil prices finally back at their pre-conflict levels."
"Alongside the oil price declines, the other positive story overnight came from Micron’s earnings after the US close. Their revenue outlook was at $50bn for the fiscal fourth quarter running through August, well above the $43.2bn analyst consensus."
"So that reignited hopes about AI-fuelled growth and helped to push back against fears we were in some kind of bubble. And in turn, Micron’s shares surged nearly 16% in after-hours trading, and futures on the NASDAQ 100 have also surged +1.77% overnight. So that tech strength has helped to lift US equities more broadly, with S&P 500 futures up +0.53%, finally pointing to a recovery after 3 consecutive losses for the index."
"This positivity has been clear in Asian markets overnight, with the Nikkei (+4.10%) and the KOSPI (+5.73%) both surging, alongside a strong gain for the CSI 300 (+1.61%). The main exception to that pattern has been the Hang Seng (-1.38%), which is currently on course for a one-year low."
"This backdrop helped equities to stabilise after their losses on Monday and Tuesday, with the S&P 500 (-0.10%) only posting a modest decline. That came as the Mag 7 (-0.82%) fell further into correction territory, having now fallen -11.6% since its May 28 peak, whilst the S&P 500’s energy sector (-1.73%) also struggled amid the decline in oil prices. But there was some positivity more broadly, with almost two-thirds of the S&P constituents higher on the day, leaving the equal-weighted S&P 500 up +0.71%. And over in Europe, the STOXX 600 (+0.08%) posted a marginal gain as well."
(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
TSMC captures Intel's market and discusses Terafab cooperation with Musk, reaching a record high in stock price
TSMC's US stock closed up 2.8%, while Intel, which joined the Terafab project in April this year, saw its share price fall by 2.6%. Musk confirmed on social media that preliminary discussions have taken place between TSMC and Terafab. According to reports, industry insiders estimate there is over an 80% probability of collaboration between TSMC and Terafab.
Record-breaking AI chip financing launches distribution: 42 billion senior debt backed by Broadcom credit endorsement, 18 billion subordinated debt awaits Anthropic IPO
According to reports, approximately $42 billion in Broadcom-secured senior secured loans have taken the lead in syndicate distribution, with Bank of America, Citigroup, and Morgan Stanley beginning to sell portions of the debt to other banks. Leveraging Broadcom's A- credit rating, the debt may later enter the private placement or investment-grade bond markets. Additionally, $18 billion in unsecured subordinated debt not guaranteed by Broadcom will be launched later, with Blackstone having committed to subscribe to about $9 billion of it.
Crypto prices
More
