Deutsche Bank strategists report the S&P 500 slipping for a third straight session as geopolitical uncertainty and higher US real yields pressure risk assets. Chip stocks stabilized and the Philly semiconductor index recovered modestly, but broader technology indices like the NASDAQ and Mag-7 edged lower. European equities, including the STOXX 600 and FTSE 100, also weakened in sympathy.

US and European stocks under pressure

"US equities struggled to recover amid the ongoing geopolitical uncertainty and rising real yields. The S&P 500 (-0.19%) retreated for a third consecutive session with two thirds of its constituents down on the day. "

"The Philly semiconductor index (+0.60%) did see a modest recovery after its -9.97% slump last week, so it’s no longer more than -20% beneath its record high, as it was on Friday."

"However, the broader tech mood was still cautious, with the NASDAQ (-0.05%) and Mag-7 (-0.07%) inching lower. And over in Europe, the STOXX 600 was also down -0.30%, with the FTSE 100 (-0.71%) leading the losses amid the broader UK asset underperformance."

"However there has been a bounce this morning in Asia with S&P (+0.42%) and Nasdaq (+1.03%) futures both comfortably higher. The tech recovery continues elsewhere as the KOSPI (+4.63%) is leading gains in the region after falling nearly 5% yesterday."

"Elsewhere, the Nikkei (+2.76%) is also firm after yesterday's holiday. In China, the CSI 300 (+1.76%) and Shanghai Composite (+0.62%) are posting solid gains, while the Hang Seng (+0.03%) is fairly flat alongside the S&P/ASX 200 (+0.08%)."

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