US equities: Recovery extends following post-election selloff – Rabobank

According to Rabobank's RaboResearch Global Economics & Markets, the S&P 500 has recovered about 3%. The rebound brings it back to pre-November 4 levels following a sharp 4.4% decline after the Midterm elections. An 11% advance in the Philadelphia Semiconductor Index helped the Nasdaq gain 5% across two sessions. The bank warns, however, that structural risks remain for the US AI infrastructure buildout.

S&P 500 and Nasdaq regain ground

"After collapsing 4.4% in one day last week following the US Midterm elections, the S&P 500 is starting to show signs of recovery, having moved 3% higher, back to pre-November 4 levels. Despite the unfortunate headlines surrounding Jensen Huang, the Nasdaq also made a strong recovery, having moved 5% higher over the past two sessions, supported by the Philadelphia Semiconductor Index, which managed to work its way more than 11% higher."

"But the risks facing the US AI infrastructure buildout remain."

"Unfortunately, this also sets the US behind as it seeks to reindustrialize, leaving the manufacturing gap between the US and China harder to close. But equities did well yesterday, so the market seems content to deal with these problems later."

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