S&P 500: Steady yet volatile amid developments in oil and credit – Deutsche Bank

US Stock Market Shows Strength Amid Volatility

According to Deutsche Bank analysts, American stocks continue to demonstrate resilience, even as intraday price fluctuations remain pronounced. The S&P 500 experienced a slight dip, closing well below its peak for the day, but overnight futures rebounded. Although market volatility is still high, the index is supported by robust performance from the Mag-7 and encouraging tech sector results, including Oracle’s optimistic sales forecast. The S&P 500 currently sits less than 3% beneath its late January all-time high.

Risk Assets Rally as Oil Market Pressures Ease

Relief in the oil markets triggered a notable surge in risk assets yesterday, with the STOXX 600 climbing 1.88%—its strongest performance since last April. However, negative news later in the US trading session caused the S&P 500 to lose its earlier gains, ending the day down 0.21%. Overnight, S&P 500 futures have risen by 0.32%.

Volatility Remains Elevated

Late-session turbulence led the S&P 500 to finish nearly one percentage point below its intraday high, while the equal-weight version of the index dropped by 0.82%. The VIX, a measure of market volatility, closed at 24.93—down 0.57 points for the day, but still well above its intraday low of 22.19.

Financial Stress Eases Despite Cautious Sentiment

While investors remain wary, financial stress has significantly diminished since the week began, when the VIX opened at 35. Despite ongoing volatility, the S&P 500 is still within 3% of its record high set on January 27.

Mag-7 Bolster Market Stability

The Mag-7 group has been instrumental in maintaining the strength of US equities. Following a 0.38% increase yesterday, the index is now 1.15% higher than its pre-strike levels.

This article was produced with assistance from an Artificial Intelligence tool and reviewed by an editor.