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Oil lift energy, software leads as semiconductors lag

Danske Research says equity indices were broadly flat over the summer, but rotations were substantial, tied to shifting attention around the AI spending cycle.

Reported · Written up by our desk · Sectors

Danske Research Team said equity indices were broadly unchanged over the summer, but sector rotation has been significant beneath the surface.

Higher oil prices supported energy stocks, while within technology, software materially outperformed and semiconductors lagged, a move Danske said was not driven by disappointing earnings.

Danske added that investor focus is again centered on uncertainty about the longer term AI capital expenditure cycle, helping explain the divergence inside technology.

Regionally, the rotation also showed up in performance, with Emerging Markets weaker and Norway gaining support from higher energy prices, while sentiment has improved as oil prices fell, with South Korea noted as an exception after equities dropped around 6%.

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