S&P 500: Resilient earnings amid AI-led selling – Deutsche Bank

7377 was the S&P 500 level reported by Deutsche Bank. A 0.31% gain on Friday left the index down 2.68% for the week, its weakest weekly performance since April 2025. Stocks exposed to AI suffered sharp declines as sector rotation benefited Consumers Discretionary and Communications Services. Against this volatile backdrop, Deutsche Bank’s asset allocation team found that global and US earnings growth remained notably robust in Q3, with margins at record levels.

2.68% Weekly S&P 500 Decline as AI Stocks Slide; Earnings Stay Strong

"The S&P 500 fell -2.68% (+0.31% Friday), marking its worst weekly performance since April 2025."

"Moreover, the most AI-exposed areas saw even bigger declines, with the Philly semiconductor index down -12.15% (+4.21% Friday), whilst CoreWeave fell another -15.44% (+6.28% Friday)."

"Our asset allocation team have reviewed the global earnings season here and highlighted how growth has remained remarkably strong in Q3 despite a very high hurdle after 38% year-on-year growth in Q2 and persistent upgrades ahead of the reporting season."

"US earnings growth likely held at 34%, with the median company growing 14% and growth excluding Tech, Energy and Materials at 13%, one of the strongest rates since the GFC."

"So although consensus sees some moderation in 2027, the striking feature of this earnings season has been how broad-based the strength remains even against an exceptionally demanding starting point."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)