Deutsche Bank: Stagflation Weighs on US Equities, Chip Stocks Outperform

Deutsche Bank strategists report that US equities came under pressure in a stagflationary environment. The S&P 500 posted broad-based declines, reflecting investor anxiety over slowing growth combined with persistent inflation.

In contrast, the Philadelphia semiconductor index outperformed the broader market, suggesting a divergence in sector performance. Chip stocks held up better as the market digested mixed macro signals.

The report highlights ongoing uncertainty around the economic outlook, with stagflation fears weighing on risk appetite across most equity sectors.