US equities show resilience as the S&P 500 and Nasdaq recover from post-election losses, though Rabobank cautions that structural AI infrastructure risks and manufacturing challenges remain.
The S&P 500 has already recovered about 3% of its 4.4% post-Midterm election drop and sits back at pre-November 4 levels, so the rebound is largely priced in. Rabobank warns structural risks to the US AI infrastructure buildout remain and notes the US manufacturing gap with China is harder to close, arguing against further upside momentum.
The Nasdaq gained 5% over the past two sessions, lifted by an 11% rise in the Philadelphia Semiconductor Index despite negative headlines around Jensen Huang. The sharp rebound is already behind it, and Rabobank's caution that AI infrastructure buildout risks persist limits the case for continued gains.
The S&P 500 has regained 3% to reach pre-November 4 levels after a 4.4% post-election drop. Simultaneously, the Nasdaq climbed 5% over two sessions, bolstered by an 11% surge in the Philadelphia Semiconductor Index. Despite these gains, Rabobank analysts warn that structural risks to US AI infrastructure and a widening manufacturing gap with China persist.
It has regained about 3%, returning to pre-November 4 levels after the 4.4% one-day drop, but Rabobank warns the structural risks behind the selloff remain.
The Nasdaq gained 5% over two sessions, supported by the Philadelphia Semiconductor Index rising more than 11%, even as Rabobank kept a cautious stance on AI infrastructure risks.