|

Equities: Chip rebound offsets rates repricing – Deutsche Bank

Deutsche Bank’s Jim Reid notes that despite higher United States (US) Treasury yields and renewed speculation about a July Fed rate hike, US equities advanced, led by a strong recovery in chip stocks. The Philly Semiconductor Index posted its best daily performance in a month, lifting the S&P 500, while markets simultaneously priced a more hawkish Fed path as real yields hit multi‑year highs.

Semiconductors drive equity resilience

"To be fair, equities performed very well considering that, thanks to a chip stock rebound, but markets still priced in a more hawkish path for central banks, with bond yields moving higher around the world as a result."

"Standby for Alphabet and Tesla's earnings after the US close. The former's capex plans, and the market reaction to them, will be fascinating. "

"Whilst sovereign bonds had a bad day, it was a different story for global equities, which surged thanks to a sharp bounceback in chip stocks. In fact, the Philly semiconductor index (+5.21%) posted its best daily performance in the last month, which helped to lift US equities more broadly. "

"So the S&P 500 was up a sizeable +0.89% on the day, even as a majority of companies in the index lost ground. And over in Europe, tech stocks also helped to power the recovery, with the STOXX 600 up +0.56% on the day, with the STOXX Technology Index up +3.29%."

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

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Editor's Picks

GBP/USD holds recovery gains near 1.3400 despite soft UK CPI data

GBP/USD clings to recovery gains near 1.3400 in European trading on Wednesday. The UK annual Consumer Price Index (CPI) inflation cooled to 2.6% in June against the market forecast of 2.7%, failing to deter the British Pound's rebound from weekly troughs. However, the pair's further upside could be limited by ongoing Mideast tensions and sustained US Dollar demand as a haven.

EUR/USD gains ground above 1.1400 on hawkish ECB tone

The EUR/USD pair holds positive ground near 1.1410 during the early European trading hours, bolstered by a hawkish tone from the European Central Bank. However, the potential upside for the major pair might be limited amid escalating military tensions and recent retaliatory airstrikes between the US and Iran.

Gold: Strong recovery might face roadblock as oil price extends gains

Gold price extends its winning streak for the third trading day on Wednesday, trading 1.5% higher to near $4,140 during the Asian session. The precious metal recovered strongly in the past few trading days from its three-week low of $3,959.80 as traders scaled back Federal Reserve’s interest rate hike expectations for the monetary policy meeting next week.

Bitcoin holds firm as ONDO and GRAM lead rally

The broader cryptocurrency market is witnessing an easing of bearish momentum, with Bitcoin holding above $66,000 on Wednesday. Altcoins including Ondo and Gram, formerly known as Toncoin, are leading gains over the last 24 hours, driven by new features. Bitcoin holds above $66,000 on Wednesday, following a 2% surge the previous day.

Hyperliquid hits a make-or-break zone amid easing demand

Hyperliquid (HYPE) hovers around $60 capped below its 50-day Exponential Moving Average at $62.70. The everything exchange token is losing its retail demand as funding rates fluctuate near zero amid elevated long liquidations.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?
The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.