US, European Indexes Edge Higher on AI Stocks Momentum
US and European indexes edge higher as AI stocks draw buying interest amid an Nvidia CEO scandal. Renewed appetite for technology and AI infrastructure drove a broad risk-on rally, supported by falling oil prices and, in the US, easing Treasury yields, as investors look ahead to today’s inflation data.
The S&P 500 closed 2.35% higher, the NASDAQ gained 2.74%, and the Dow Jones ended the session up 2.15%, despite Nvidia (-4.27%) falling on concerns over possible tighter chip export restrictions.
Europe followed as investors reassessed AI deployment prospects and bank earnings supported financials. The Euro Stoxx 50 closed 1.94% higher, while mining strength lifted the FTSE 100 by 1.02% alongside firmer gold and copper prices.
Against that backdrop, Asia-Pacific markets extended the advance. The Nikkei 225 is up 2.46%, and the Hang Seng Index is up 0.29%, with technology and semiconductor shares benefiting from improved global sentiment and lower energy costs.
Australia’s ASX 200 closed 1.10% higher, supported by Wall Street’s rally, although weaker consumer and business sentiment tempered gains.
The Johannesburg Stock Exchange (JSE) is set for a firmer open after closing higher in the previous session, with global futures leaning positive and Asian markets trading on the front foot.
Resilient Chinese trade data is reinforcing the constructive regional tone, although steady US Treasury yields ahead of inflation data may temper risk appetite.
Tencent’s 0.05% gain offers a modest positive read-through for Naspers and Prosus, while Australia’s Mining Index 1.53% advance bodes well for local resource counters.
The commodity picture is less uniform. Softer gold and Brent crude may restrain gold miners and energy shares, but gains in platinum and palladium should lend support to PGM counters.
South African equities rallied strongly on Monday, with the All-Share Index rising 2.04% and the Top 40 gaining 2.27%.
The main catalyst was a sharp easing of US-Iran tensions after President Trump said further strikes on Iran were unlikely, triggering a near 6% drop in Brent crude and boosting global risk appetite.
Resource stocks led the advance, climbing 4.64%, driven largely by precious metals (+5.77%) as gold rebounded above $4 100/ounce amid easing inflation concerns linked to lower oil prices.
Industrials also advanced 1.31%, while Financials gained a more modest 0.77%, supported by a bond-market rally that saw the 10-year government bond yield fall.
Domestically, municipal election results are prompting coalition negotiations across seven of the country’s eight largest cities. Despite the added political uncertainty, investor sentiment remained firmly positive as global geopolitical developments dominated market direction.
Hang Seng Index Rises on AI Momentum, US, European Markets Dip
