Global Equities Markets Rally on AI Momentum, SpaceX IPO Debut
The global equities markets rally, with Wall Street closing higher following SpaceX’s initial public offering, supporting investor optimism.
A breakthrough interim agreement between the US and Iran to reopen the Strait of Hormuz has emerged as the dominant driver for global markets, sharply reducing geopolitical risk and triggering a decline in oil prices, easing inflation concerns.
This shift in sentiment lifted risk appetite across regions, with AI and tech stocks leading momentum. The S&P 500 ended the week up 0.50% on Friday, the NASDAQ gained 0.31%, and the Dow Jones advanced 0.70%, with additional momentum from SpaceX’s record-breaking IPO underscoring investor demand for growth stocks.
European benchmarks followed suit, with the FTSE 100 ending the week up 1.63% and the Euro Stoxx 50 closing 2.16% higher, both benefiting from softer energy prices and reduced rate-hike fears.
In Asia-Pacific, the Hang Seng Index is currently up 0.45% as investors rotate into finance and technology, while the Nikkei 225 is surging 4.83%, and the ASX 200 is trading 1.34% higher on optimism that inflationary pressures are abating and rate hikes may pause.
First National Bank (FNB) said in a Monday brief that the Johannesburg Stock Exchange (JSE) is set for a buoyant open this morning after a positive prior close, as global futures rally and Asia trades decisively firmer on easing geopolitical risk.
The robust tone is reinforced by a sharp 4.43% jump in the ASX 300 Metals & Mining Index, which bodes well for local resource counters. That said, a softer Tencent, down 0.43% in early trade, may temper enthusiasm for Naspers and Prosus.
Precious metals are broadly firmer, with gold and platinum extending gains, offering further support to gold miners and PGM counters. With commodity momentum building and risk appetite improving, resource-linked sectors are poised to lead at the open.
The South African bourse saw an upbeat start to Friday’s session, traded sideways throughout the day, and closed with green screens across the board as investor sentiment was boosted by heightened optimism about a possible peace agreement between the US and Iran.
The All Share Index and Top 40 gained 2.24% and 2.33%, ending the day at 112 721 and 104 698 points respectively. Resources led the pack, gaining 4.72% as basic materials (+4.61%) and precious metals (+5.73%) rallied on the back of firm gold and PGM trading. Financials (+2.02%) and Industrials (+0.53%) maintained momentum from the previous session closing firmly above the line.
