Deutsche Bank strategists report that United States (US) equities, led by the S&P 500, have reached new record highs as softer inflation data and lower Oil prices reinforce expectations that the Fed can stay on hold. Rate-sensitive sectors and major tech indices, including the NASDAQ and semiconductor stocks, have participated in the rally, with breadth improving via equal-weighted benchmarks.

US equities extend record-setting rally

“In contrast, Hong Kong’s Hang Seng (-0.93%) and Australia’s S&P/ASX 200 (-1.01%) are under pressure, while mainland Chinese benchmarks are seeing modest declines, with the CSI 300 (-0.12%) and Shanghai Composite (-0.21%) edging lower.”

“And in turn, all this dovish newsflow benefited US equities, with the S&P 500 (+0.65%) at another record.”

“This was aided by a recovery for the Magnificent 7 (+1.20%) as well as tech stocks more broadly as the NASDAQ (+0.81%) and the Philly semiconductor index (+0.46%) also advanced. But it was a positive day more broadly with the equal-weighted S&P 500 (+0.74%) outperforming and hitting a new high as well. “

“Earlier in Europe, markets hadn’t been quite as resilient, with the STOXX 600 (-0.04%) edging lower for a second consecutive session.”

“In Asia this morning, the KOSPI (+1.99%) continues its recent comeback, extending its rally to a fifth straight session, with the Nikkei (+0.56%) also firm.”

“S&P 500 futures are flat with the Nasdaq equivalent -0.15%. European futures are back up a quarter to half a percent.”