Deutsche Bank analysts note that US equities remain relatively resilient despite sharp intraday swings. The S&P 500 slipped slightly and closed well off its highs, while futures recovered overnight. Volatility remains elevated, but the index is still less than 3% below its late-January record, supported by the Mag-7 and positive tech earnings such as Oracle’s strong sales outlook.

US equities hold near record territory

"Easing oil market stress sparked a strong rally in risk assets yesterday, with the STOXX 600 (+1.88%) recording its best day since last April. And while more concerning headlines late in the US session saw the S&P 500 (-0.21%) erase its gains, futures on the S&P 500 are +0.32% higher overnight."

"The volatility late in the US session did mean that the S&P 500 (-0.21%) closed nearly a percentage point off intra-day highs, with the equal-weight S&P 500 seeing a larger -0.82% decline."

"And the VIX index closed at 24.93, a modest -0.57pts lower on the day and notably above its intra-day low of 22.19."

"Still, while there remains plenty of caution, financial stress has eased materially since the start of the week when the VIX reached 35 at Monday’s open. And despite the recent volatility, the S&P 500 is still less than 3% from its record high on January 27."

"The Mag-7 have played a big role in supporting the relative resilience of US equities, with the index now +1.15% above its levels before the strikes after a +0.38% gain yesterday."

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