Equities: Oil shock and tech earnings hit equities – Deutsche Bank

Deutsche Bank strategists highlight that the S&P 500 and Nasdaq fell sharply as surging Oil prices and stagflation fears weighed on risk assets. Weak post‑earnings reactions in Tesla and Alphabet dragged the Mag 7 index to its biggest daily loss since 2025. US HY spreads widened, while Asian equities, led by the KOSPI and Nikkei, extended declines.

Stagflation worries pressure global equities

"That jump for oil prices and fears of stagflation put serious pressure on global equities, with the S&P 500 (-1.21%) and Nasdaq (-2.15%) both sliding yesterday."

"Matters weren’t helped by Tesla (-14.52%) and Alphabet (-7.13%), which both saw large declines after their earnings release the previous day. So that drove a big loss for the Mag 7 (-4.78%) index, which posted its biggest daily decline since the week of the Liberation Day turmoil in 2025."

"The sell-off wasn't just in the US, as Europe was hit hard by the oil shock, with the STOXX 600 down -1.18% as the CAC 40 (-1.64%), DAX (-1.56%), and FTSE MIB (-2.80%) all posted large declines."

"In Asia the negative mood continues but US equity futures are more stable. The KOSPI (-5.62%) is again leading declines and is poised to wipe out gains made earlier this week as major chipmakers follow weakness seen among their US counterparts. Japan’s Nikkei (-2.87%) is also sharply lower, extending its losing streak into a third consecutive week."

"In China, the CSI 300 (-1.17%) remains on course to break a four-week run of weekly losses despite today’s decline. Hong Kong’s Hang Seng (-1.27%) is also trading lower but is still positioned to record a fourth straight week of gains. The S&P/ASX 200 (-0.93%) is also lower. S&P 500 futures are down -0.08% with the Nasdaq equivalent -0.34% lower."

"The tech cycle mood improved a bit after a stellar earnings report from Intel which forecast that revenue in Q3 will be $15.8-16.8bn, well above the $15.1bn average estimate. Intel’s shares rose by +4.5% in after-hours trading. "

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