Wall Street Surges on AI, Technology Stocks Momentum
Wall Street surged on AI, with technology stocks rallying amid fluctuating sentiment in global equity markets. In Europe, investors’ sentiment shifted negative following US and Iranian strikes.
Expectations for technology and AI exposure continued to dictate sentiment, with a robust recovery in heavyweight US tech shares pushing the market higher.
As a result, the S&P 500 ended up 1.18%, the NASDAQ gained 2.07%, and the Dow Jones ended 0.59% higher at a record close, First National Bank (FNB) said in a brief on Tuesday.
Google parent Alphabet jumped 4.8% on its first trading session as a component of the Dow Jones Industrial Average. Newly listed SpaceX surged 7.2% after Nasdaq announced the stock would join the Nasdaq 100 Index on July 7.
Comcast also gained 4.5% after unveiling plans to separate NBCUniversal and Sky into two independent publicly traded companies through a tax-free spinoff.
European markets tracked this advance, with the Euro Stoxx 50 closing up 0.16% as chip producers rebounded and energy names recovered on stabilising crude prices.
However, the FTSE 100 slipped 0.23% as weaker metal prices weighed on major miners, offsetting isolated gains in telecoms and oil.
In Asia, trade is mixed this morning with the Nikkei 225 currently up 1.50% on renewed risk appetite, while the Hang Seng Index is down 1.19% thus far, lagging the recovery seen among AI shares.
The ASX 200 is trading 0.17% lower, pausing after recent gains as investors assess the latest round of Reserve Bank of Australia minutes, with a sell-off in mining stocks pulling the index lower.
The Johannesburg Stock Exchange (JSE) is set for a cautious open this morning as global equity futures offer a tentative positive lead while Asian markets are leaning more towards negative territory.
Local resource counters may face headwinds as well after the ASX 300 Metals and Mining Index slipped 1.52% in a softer session, compounded by pressure from weaker gold and platinum prices.
That being said, Tencent’s 0.24% gain provides modest support for Naspers and Prosus, but the tone from the East remains uneven.
The local bourse traded higher at the open on Monday but lost momentum in late-afternoon trade, closing somewhat flat following reports that the US and Iran confirmed that delegations would meet in Qatar to resume peace talks, ultimately easing fears of a prolonged disruption to the Strait of Hormuz.
By market close, the JSE All Share Index and Top 40 were little changed at 110 271 and 101 834 points, respectively. Industrials (+1.83%) and Financials (+0.16%) reversed losses from the previous session and ended in green territory.
Resources shed 2.37% on the day, pressured by a sharp decline in the Precious Metals and Mining Index (-2.93%). #Wall Street Surges on AI, Technology Stocks Momentum Intel, Nvidia Drive Wall Street Rally, FTSE 100 Declines
