Global Markets Mixed, AI Stocks Fuel Wall Street Rally
The global markets were mixed as artificial intelligence (AI) and tech stocks drove Wall Street higher last week, supported by optimism over US-Iran peace talks.
Wall Street finished last week trading near record highs, with the S&P 500 rising 0.22%, the NASDAQ gaining 0.20%, and the Dow Jones advancing 0.72%.
European markets were more subdued, with the FTSE 100 falling 0.16% and the Euro Stoxx 50 edging 0.08% lower as investors digested mixed economic data while monitoring developments surrounding the United States-Iran memorandum aimed at maintaining the ceasefire.
In Asia, sentiment was more constructive with the Hang Seng Index up 0.88% and the Nikkei 225 gaining 0.59% on sustained appetite for technology shares. Australia’s ASX 200 has edged 0.04% higher so far.
The Johannesburg Stock Exchange (JSE) is poised for a firmer open this morning with global futures trading higher and Asian markets broadly in positive territory, First National Bank (FNB) said in a brief.
The bank said a 2.67% gain in Tencent provides a positive lead for Naspers and Prosus, while the S&P/ASX 300 Metals & Mining Index’s 0.39% advance should bolster local resource counters.
Firmer platinum prices are likely to benefit PGM stocks, although softer gold prices may weigh on precious metal miners, FNB added. The local bourse closed lower on Friday with red screens all round, as the All Share Index fell 0.40% and the Top 40 dropped 0.38%.
The session’s primary sentiment driver was the South African Reserve Bank’s 25-basis point interest rate hike to 7% announced in the prior session, its first increase since 2023, as inflation risks rose following the Middle East crisis, pushing up fuel costs.
Resources shed 0.16% while Industrials bore the brunt of selling pressure, dropping 0.67%, amid a sharp decline in Dis-chem (-7.8%) and Pick n Pay (-7.7%). Financials (-0.35%) extended losses for the second consecutive session. 464 of S&P 500 Companies Beat Q1 Earnings Targets
