Stock Market: Tech Leads as Oil Softens — Deutsche Bank

Deutsche Bank noted in its latest strategy report that as oil prices soften, tech stocks are leading a market rebound, with Nvidia's earnings becoming a key macro catalyst, although the market-boosting effect of positive earnings has weakened over recent quarters.

**Tech Rebound Supports US and European Stocks**

Ahead of Nvidia's latest earnings release, a rebound in Nvidia and semiconductor stocks helped lift the S&P 500 and the Nasdaq. European markets also largely strengthened, with risk appetite improving. However, Deutsche Bank strategists cautioned that sentiment swings related to artificial intelligence could still disrupt the tech sector, noting that a previous oil price surge and a slide in chip stocks had weighed on US equities.

**Asian Markets Mostly Higher; KOSPI Leads**

Supported by lower oil prices and falling bond yields, which boosted risk sentiment, Asian markets mostly rose, with South Korea's KOSPI leading the gains. Australian stocks lagged, however, after inflation data came in higher than expected, making them the weakest link in the region. Market sources indicated that investors are closely monitoring inflation trends for their potential impact on central bank policy paths.

**Lower Oil and Yields Provide Key Support**

Deutsche Bank believes that the pullback in oil prices and bond yields is providing support for risk assets. Earlier, when oil prices were extending gains, the S&P 500 pulled back from record highs, with chipmakers leading declines while energy and healthcare sectors outperformed. The current softening in oil prices helps ease inflation concerns and improve market sentiment. Still, strategists noted that uncertainty around oil price movements persists and that their impact on risk appetite warrants continued monitoring.