S&P 500: Higher yields pressure equities – Deutsche Bank

Deutsche Bank’s Early Morning Reid notes that rising US yields and Oil prices are weighing on equities. The S&P 500 fell nearly 0.8%, led by larger declines in the Magnificent 7, while defensive sectors such as consumer staples and healthcare posted modest gains.

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"Moreover, yesterday started to see growing pressure on risk assets as well, as the S&P 500 fell -0.77%, whilst US and European HY spreads reached their widest levels since April."

"That backdrop also hit equities on both sides of the Atlantic, with the major indices generally moving lower. In the US, the S&P 500 (-0.77%) fell in a broad-based decline, with matters not helped by a larger fall for the Magnificent 7 (-1.72%)."

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"There were also signs of stress in other risk assets yesterday, as IG and HY credit spreads widened to levels last seen in April in both the US and Europe. So by the close, US IG (+2bps) and HY (+9bps) had both seen a notable jump, as had European IG (+3bps) and HY (+9bps)."

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

РЫНОЧНЫЕ КОТИРОВКИ

Название / Символ
График
% Изменение / Цена
GBPUSD
Изменение за 1 д.
-0.73%
1.33301
EURUSD
Изменение за 1 д.
-0.58%
1.11539
USDJPY
Изменение за 1 д.
+0.45%
158.883
AUDUSD
Изменение за 1 д.
-0.59%
0.68712