Global Markets Tumble on Tech Stocks Rout, Nasdaq, S&P 500 Fall
Global markets tumbled on an AI and tech stock rout following a US midterm election win by Democrats, signalling a potential slowdown in strikes against Iran.
Since the election results, global oil prices have continued to moderate on expectations that peace will return to the Middle East, as markets bet on US Democrats to end the war.
Also, fears that tighter Democratic regulation could slow AI and data centre investment triggered a global technology sell-off, overwhelming optimism about an end to the Iran war.
The NASDAQ closed 5.52% lower and entered correction territory, while the S&P 500 fell 4.36% and the Dow Jones ended the session down 3.44%.
Strong jobs data also lifted Treasury yields, reinforcing expectations that the Federal Reserve will pause rate cuts. The retreat spread to Europe, where semiconductor exposure weighed on the Euro Stoxx 50, which closed 0.55% lower, while defence and banking losses pushed the FTSE 100 down 0.43%.
The Bank of England also raised the key bank rate by 25 basis points to 4% at its policy meeting yesterday, in line with expectations. Asian performance is soft this morning.
The Nikkei 225 is trading 5.93% lower as the technology rout carries across the region, while the Hang Seng is currently down 1.06%.
Australia remained under pressure as well, with the ASX 200 closing 0.49% lower as gains among major banks failed to offset pressure on technology and mining shares.
The JSE is set for a softer open this morning after closing higher in the previous session, with global futures offering little conviction and Asian markets trading lower amid a global tech sell-off. Investors will also now look ahead to key US jobs data due out this afternoon.
The dollar is firming while longer-dated bond yields remain near recent lows, underscoring a guarded macro backdrop. That said, Tencent’s 2.51% decline weighs on Naspers and Prosus.
On the resources side, Australia’s mining index fell 2.63%, pressuring diversified miners. Precious metals have also lost traction, with softer gold likely to weigh on gold miners, while weaker platinum and palladium point to pressure on PGM counters.
The Johannesburg Stock Exchange (JSE) delivered a standout performance on Thursday, closing sharply higher amid a supportive global backdrop after a Democratic sweep in the US midterm elections drove broad-based buying as markets raised hopes of a faster resolution of the Middle East conflict.
Local markets responded strongly, with the All Share Index gaining 3.67%, while financials led the rally, up 4.08% as banks re-rated on an improved sovereign outlook.
Industrials led the major sectors, advancing 4.92% on rand strength and improved domestic risk sentiment, while resources added 2.78%, supported by strong precious-metals moves (+4.27%) as gold rallied.
South African government bonds also ran, as yields fell across the curve, reflecting improved perceptions of sovereign credit risk. Nvidia’s $3bn Meta Bet Exposes Major AI Unknown
