Strategists at Deutsche Bank point out that rising oil costs and concerns about stagflation caused the S&P 500 and Nasdaq to plummet. The Mag 7 index saw its largest daily decline since 2025 due to weak post-earnings reactions in Tesla and Alphabet. While Asian stocks, particularly the Nikkei and KOSPI, continued to drop, US HY spreads widened.
Global stocks are under pressure due to concerns about stagflation.
"The S&P 500 (-1.21%) and Nasdaq (-2.15%) also fell yesterday as a result of the spike in oil prices and concerns about stagflation."
"Tesla (-14.52%) and Alphabet (-7.13%), both of which witnessed significant drops following their earnings release the day before, did not assist. The Mag 7 (-4.78%) index suffered a significant loss as a result, recording its largest daily drop since the week of the Liberation Day unrest in 2025."
"Europe was severely impacted by the oil shock, with the STOXX 600 down -1.18% while the CAC 40 (-1.64%), DAX (-1.56%), and FTSE MIB (-2.80%) all registered significant falls. The sell-off was not limited to the US."
"US equities futures are more stable, but the gloomy sentiment persists in Asia." As major chipmakers follow the slump observed among their US counterparts, the KOSPI (-5.62%) is once again leading falls and is set to erase gains earned earlier this week. The Nikkei (-2.87%) in Japan has also dropped significantly, continuing its losing run for a third week in a row.
Despite today's drop, the CSI 300 (-1.17%) in China is still on track to end a four-week streak of weekly losses. Although it is now trading lower, Hong Kong's Hang Seng (-1.27%) is still expected to achieve gains for a fourth consecutive week. Additionally down is the S&P/ASX 200 (-0.93%). The Nasdaq equivalent is down -0.34%, while S&P 500 futures are down -0.08%.
"After Intel's impressive earnings release, which predicted that revenue in Q3 would be $15.8–16.8 billion, significantly above the average expectation of $15.1 billion, the tech cycle mood somewhat brightened. In after-hours trading, Intel's stock increased by +4.5%.
Global stocks are under pressure due to concerns about stagflation.
"The S&P 500 (-1.21%) and Nasdaq (-2.15%) also fell yesterday as a result of the spike in oil prices and concerns about stagflation."
"Tesla (-14.52%) and Alphabet (-7.13%), both of which witnessed significant drops following their earnings release the day before, did not assist. The Mag 7 (-4.78%) index suffered a significant loss as a result, recording its largest daily drop since the week of the Liberation Day unrest in 2025."
"Europe was severely impacted by the oil shock, with the STOXX 600 down -1.18% while the CAC 40 (-1.64%), DAX (-1.56%), and FTSE MIB (-2.80%) all registered significant falls. The sell-off was not limited to the US."
"US equities futures are more stable, but the gloomy sentiment persists in Asia." As major chipmakers follow the slump observed among their US counterparts, the KOSPI (-5.62%) is once again leading falls and is set to erase gains earned earlier this week. The Nikkei (-2.87%) in Japan has also dropped significantly, continuing its losing run for a third week in a row.
Despite today's drop, the CSI 300 (-1.17%) in China is still on track to end a four-week streak of weekly losses. Although it is now trading lower, Hong Kong's Hang Seng (-1.27%) is still expected to achieve gains for a fourth consecutive week. Additionally down is the S&P/ASX 200 (-0.93%). The Nasdaq equivalent is down -0.34%, while S&P 500 futures are down -0.08%.
"After Intel's impressive earnings release, which predicted that revenue in Q3 would be $15.8–16.8 billion, significantly above the average expectation of $15.1 billion, the tech cycle mood somewhat brightened. In after-hours trading, Intel's stock increased by +4.5%.
