S&P 500: Tech-led selloff and AI disruption fears – Deutsche Bank

💡 DMK Insight

The S&P 500’s third consecutive decline signals a deeper risk-off sentiment, especially in tech stocks. With software and mega-cap tech leading the losses, traders should be wary of potential cascading effects across correlated sectors. This trend could indicate a shift in market dynamics, where investors prioritize safety over growth, especially as economic indicators like inflation and interest rates remain volatile. If this risk-off sentiment continues, we might see further sell-offs in high-beta stocks, which could lead to increased volatility in the broader market. Keep an eye on key support levels in the S&P 500; a break below recent lows could trigger more aggressive selling. On the flip side, this could present buying opportunities in undervalued sectors or defensive stocks as the market recalibrates. Watch for any signs of stabilization or reversal in tech stocks, as that could signal a potential rebound. The next few trading sessions will be crucial for gauging market sentiment.