Equities: Rally on dovish Fed tone – Deutsche Bank

Deutsche Bank reports that US equities, led by the S&P 500, rallied as dovish remarks from Fed Governor Waller offset stronger US data. The S&P 500 logged its best day in nearly a month and moved close to record highs, supported by gains in the Magnificent 7 and easing energy prices. Futures suggest cautious continuation.

US stocks near record highs

"For US equities, the combination of strong data and dovish commentary offered more decisive support. So the S&P 500 (+1.06%) posted back-to-back gains for the first time in 3 weeks, with the index also back within 1% of its record high from last month."

"That was led by a very strong performance for the Magnificent 7 (+2.38%), which hit a 3-month high as it posted its best day in the last month. But it was still a broad-based rally, with the S&P 500 seeing the most daily advancers since early August, as more than two-thirds of the index moved higher."

"Then for equities we also saw a recovery, with the STOXX 600 (+0.49%) stabilising after 3 consecutive declines, including gains for the DAX (+0.63%), the CAC 40 (+0.07%) and the FTSE 100 (+0.70%). "

"Asian equity markets are generally riding the tech train this morning with the Hang Seng (+2.12%), KOSPI (+1.88%) and the Nikkei (+1.30%) all strong. Elsewhere, mainland Chinese markets are posting more modest gains, with the CSI 300 up +0.43% and the Shanghai Composite advancing +0.35%. In contrast, Australia's S&P/ASX 200 (-0.21%) is bucking the regional trend. "

"US and European equity futures are all up less than a tenth of a percent."

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