European Stocks Rally as AI Bears Drag S&P 500, Nasdaq Lower
European markets rallied amid a downturn on Wall Street, driven by negative performance in the S&P 500 and Nasdaq, though the Dow Jones escaped the bearish touch on Monday.
Doubts over returns on heavy artificial intelligence investment, compounded by elevated borrowing costs, weighed on technology shares across global markets.
The S&P 500 closed marginally lower, and the NASDAQ fell 0.44%, pressured by memory chip stocks, while the Dow Jones gained 0.38% as the broader market saw some reprieve, a stockbroking and portfolio management subsidiary of First National Bank (FNB) said in a brief.
European equities resisted the technology drag as robust global earnings projections supported most sectors despite elevated yields. The Euro Stoxx 50 closed 0.45% higher, while banking and oil shares helped the FTSE 100 gain 0.99%.
In Asia-Pacific trading, the Hang Seng Index is currently down 0.39% and the Nikkei 225 is trading 2.24% lower as the Wall Street technology selloff spills into the region.
Australia’s ASX 200 closed relatively flat as concerns over oil-driven inflation, upcoming domestic data, and China’s economic outlook kept investors cautious. Attention now turns to major US bank earnings and Wednesday’s inflation report.
The Johannesburg Stock Exchange (JSE) ended Monday’s session on a lightly positive note, with the All-Share Index rising 0.22% to 108 759 and the Top 40 Index gaining 0.20% to 100 963. Financials led the advance, up 0.66%, supported by strong gains in the banking sector (+0.93%).
Industrials added a modest 0.09%, while resources slipped 0.11%, driven by weakness in precious metals (-0.29%) as a strong US dollar ahead of this Wednesday’s US CPI data release for September offset safe haven demand for the bullion.
On the corporate front, Boxer closed slightly higher (+0.63%) after initially coming under pressure as the market reacted to interim results that saw sales come in below market expectations due to ongoing food price deflation.
The JSE is set for a softer open this morning with global futures carrying a mild negative bias and Asian markets trading lower.
Falling sovereign yields across major markets offer some support to risk appetite, while the International Monetary Fund’s (IMF) modest upgrade to its 2026 global growth forecast provides a steadier macro backdrop.
Tencent is down 0.42%, implying a slightly negative read-through for Naspers and Prosus. Resources may also lag, as the S&P/ASX 300 Metals and Mining Index declined 2.17%, indicating pressure on local miners. Crude Oil Prices Mixed, Brent Rises 0.5% in 5-Day, WTI Dips
