S&P 500: Strong gains led by tech recovery – Deutsche Bank

The S&P 500 has almost erased its post-midterm losses. Deutsche Bank’s Jim Reid points to a sharp US equity rebound, with the index recording its strongest session since April’s Iran ceasefire announcement. AI-related stocks and semiconductor names led the advance after positioning had shifted to underweight. Volatility also dropped sharply, as measured by the VIX.

AI and semiconductor stocks lead equity gains

"Markets have put in a very strong performance over the last 24 hours, with all the main risk factors fading into the background."

"So in turn, that meant the S&P 500 (+2.35%) built on Friday’s recovery and posted its strongest day since the Iran ceasefire announcement in April."

"The index is now "only" down -0.25% in the four business days since the midterms."

"This strength was clearest in the most AI-exposed assets, which continued to recover from last Thursday’s slump."

"So all round, investors became a lot more optimistic on the near-term outlook, and the VIX index (-5.72pts) posted its sharpest daily decline since April 2025 when equities rebounded from their post-Liberation Day sell-off."

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