Stocks: Chip Stocks Lead Selloff Amid Stagflation Pressures — Deutsche Bank

Global equities are facing a fresh round of selling as rising bond yields and higher oil prices reinforce stagflation expectations, according to the latest report from Deutsche Bank strategists. US stock indices, led by chip stocks and the Nasdaq Composite, extended losses, with the Nasdaq Composite last trading near 26,289.71 points at the time of writing, with the technology sector under particular selling pressure.

**Chips and Tech Stocks Bear the Brunt of the Selloff**

Benchmark indices with heavy semiconductor weightings fell sharply, becoming a major drag on the broader market. According to analysts at Deutsche Bank, the weakness in technology stocks has clearly spread from the "Magnificent Seven" and large-cap names like Apple to Asian markets, further dampening overall risk sentiment. The pan-European Stoxx 600 index recorded a fifth consecutive day of declines over the same period, suggesting the selloff is not an isolated event.

**Stagflation Fears Re-emerge to Rattle Markets**

Strategists attribute the decline to a deteriorating macro backdrop. Rising yields, coupled with persistently higher crude oil prices, have led markets to reprice stagflation risks — the unfavorable combination of slowing economic growth and sticky inflation. This environment places disproportionate pressure on richly valued growth sectors, particularly chips and tech stocks. Futures market indicators suggest US and European equities could face further near-term weakness following the downturn in Asian markets.