The Ibex 35 remains close to its historical highs thanks to the boost from consumer stocks like Puig and Inditex, while the technology sector suffers sales due to doubts about artificial intelligence.
The Spanish stock market has once again demonstrated its relative strength on a day of global contrasts. While technology indices were struggling in Wall Street and Europe due to uncertainties regarding investments in artificial intelligence, the Ibex 35 managed to stay practically flat, very close to its historical highs. The secret: a clear sector rotation benefiting stocks linked to consumption, banking, and industry.
Puig and Inditex, the Engines of the Day
Two heavyweight consumer stocks have led the gains in the Spanish index. Puig and Inditex have been the most bullish stocks of the session, supported by an environment that remains favourable for household spending. The recent drop in oil prices, which has reduced transportation and logistics costs, has contributed to improving corporate margins and alleviating inflationary pressures.
According to analysts, this context allows for anticipating a less restrictive monetary policy from the European Central Bank, which could continue to boost consumption in the coming quarters. For retail investors, this means that stocks like Inditex, with a solid global presence and adaptability, remain attractive in their portfolios.
“The drop in oil is a tailwind for consumption and for companies that depend on transport,” market sources indicate.
The Spanish Banking Sector, Another Major Support
The financial sector has once again been one of the pillars of the index. More and more international analysis firms are placing Spain among their favourite markets. Economic growth above the eurozone average, improvements in the labour market, and the strength of consumption are some of the arguments they present.
Moreover, valuations of Spanish banks remain attractive compared to other developed markets. For savers, this translates into dividends from entities like Santander, BBVA, or CaixaBank potentially being maintained or even improved in the coming months, as long as the economic context does not deteriorate.
Artificial Intelligence Under Scrutiny
On the negative side, stocks most linked to the investment cycle in artificial intelligence have suffered profit-taking. ACS has been one of the hardest hit, following its extraordinary performance in recent months. Solaria, on the other hand, has been affected by the rise in debt yields, which penalises sectors most sensitive to interest rates.
The trigger for the technology sales has been the publication of Samsung's results, which did not convince the market and reignited the debate over whether the multi-billion investments in AI will ultimately translate into sufficient profits. This skepticism comes just before the start of the earnings season in the United States, which will kick off next week with the major banks.
For investors, the lesson of the day is clear: artificial intelligence remains the structural engine of the market, but the next phase of the cycle involves greater diversification. More traditional sectors like banking, consumption, or industry are taking over and supporting the stock markets, especially in Europe.
Meanwhile, geopolitical tension in the Strait of Hormuz has once again pushed oil prices above $70 per barrel. If energy pressures persist, the market may begin to question an overly optimistic scenario of interest rate cuts. For now, the Ibex 35 maintains its relative strength, offering a refuge to investors seeking exposure to equities without taking on the extreme risks of technology.
The next key date will be the start of the earnings season in the U.S., which will determine whether market expectations are backed by fundamentals. Until then, the sector rotation seems set to continue.
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