Equities: Semiconductor selloff pressures Wall Street - Deutsche Bank

FXStreet Insights Team FXStreet

Deutsche Bank strategists describe a cautious session for United States (US) equities, with the S&P 500 slipping as AI‑chip names sold off ahead of Nvidia’s earnings. While the equal‑weighted S&P approached record highs, headline indices were dragged lower by semiconductor weakness. The report also notes that US equity futures turned slightly higher in Asian trading after the prior day’s declines.

Semiconductor weakness drags indices

"In equities, sentiment was apprehensive, with the S&P 500 (-0.28%) and Nasdaq (-0.76%) moving lower, though the equal-weighted version of the S&P (+0.10%) inched up to within 0.5% of its all-time high."

"But the main indices were weighed down by renewed concerns over AI-chipmaker stocks, with Sandisk (-6.45%) and Micron (-5.83%) among the worst performers in the S&P 500 and the Philly Semiconductor Index falling -2.70%."

"Nvidia fell -2.91% ahead of its earnings release tomorrow, posting a seventh consecutive decline. That’s its longest losing streak since September 2022, two months before the public release of ChatGPT by OpenAI that then triggered Nvidia’s meteoric rise to become the world’s most valuable company."

"Yesterday’s tech declines have largely carried over into Asian markets this morning, with the KOSPI (-0.72%) leading on the downside, though it has recovered from being down more than -2% down early in the session."

"Elsewhere, the CSI 300 (-0.46%), Shanghai Composite (-0.15%), and Hang Seng (-0.25%) are also trading lower. However, the Nikkei (+0.49%) and Australia’s S&P/ASX 200 (+0.54%) are bucking the negative trend."

"Meanwhile, US equity futures on both the S&P 500 (+0.12%) and Nasdaq (+0.35%) are slightly higher after yesterday’s declines."

"In Europe, equities were mixed yesterday. The Stoxx 600 (+0.005%) was flat, with gains for the FTSE 100 (+0.35%) and IBEX 35 (+0.69%) offsetting losses for the CAC 40 (-0.37%) and DAX (-0.11%)."

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

Author

FXStreet Insights Team

FXStreet

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.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold retakes $4,200 amid pre-US CPI repositioning

Gold holds firm, revisiting $4,200 on Friday, extending recovery from two-month lows. US Dollar eases in tandem with Oil prices and Treasury yields, awaiting US sentiment data. The tide seems to be turning in favor of Gold, but the daily RSI is still bearish.

Ethereum activates Glamsterdam on Sepolia testnet: Why the price is falling anyway

Ethereum (ETH) has reached a key milestone in its next major network upgrade. The planned changes aim to improve Ethereum’s Layer 1 capacity and efficiency as network activity grows. The development comes as ETH retreats toward $2,500, highlighting the contrast between the network’s long-term technical progress and its short-term market weakness.

Canada Unemployment Rate expected to rise to 6.5% as US tariffs test labor market

Statistics Canada will release its September Labour Force Survey on Friday, with markets anticipating a modest recovery in employment following August's sharp decline. The report takes on particular importance as it will be the first to fully reflect the impact of new United States tariffs that took effect on August 22.

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.