Global Equities Markets Ease on AI, Tech Stock Valuation Concerns
Global equities markets ease on AI, technology stock valuation concerns, and renewed Middle East escalation, which dampened investors’ appetite.
Escalating tensions in the Middle East and renewed scepticism about AI and technology valuations have defined the global trading tone, with risk aversion rippling across regions.
The S&P 500 closed down 0.26%, and the NASDAQ fell 0.97%, while the Dow Jones managed a 0.17% gain as investors rotated out of tech ahead of key inflation data.
European bourses mirrored Wall Street’s late-session selloff, with the FTSE 100 dropping 1.41% and the Euro Stoxx 50 down 0.21%, as energy, banking and software names retreated further.
In Asia, the Hang Seng Index is trading 1.11% lower, and the Nikkei 225 is down 2.15%, both weighed by geopolitical concerns and the global tech pullback, while the ASX 200 is marginally higher by 0.08% amid a recovery in consumer discretionary stocks.
The Johannesburg Stock Exchange (JSE) in South Africa is set for a weaker open this morning as global equity futures come under pressure and Asian markets retreat amid ongoing Middle East instability and growing rate-hike expectations from key central banks, First National Bank (FNB) said in a brief.
While Tencent’s 2.69% gain offers some relief for Naspers and Prosus, the negative tone elsewhere is likely to limit the impact. In addition, a sharply softer session for the ASX 300 Metals and Mining Index (-1.66%) signals renewed headwinds for local resource counters, while persistent declines in gold and platinum prices present further pressure.
The JSE saw an upbeat open to Tuesday’s trade session and closed somewhat flat after a sharp decline in late afternoon trade as investors digested the fresh local GDP print, which exceeded expectations.
By market close, the All Share Index and Top 40 were little changed at 111 130 points and 103 186 points, respectively. Resources (-0.85%) closed in the red, extending losses for the fifth consecutive session as the mining sell-off persists.
Financials (0.84%) and Industrials (0.10%) maintained momentum, closing in positive territory. Kenya’s Private Sector Activity Deteriorates in May -PMI
