Intel, Nvidia Drive Wall Street Rally, FTSE 100 Declines
Intel, Nvidia, and Micron boosted Wall Street’s positive performance as demand for AI- and semiconductor-linked shares continues to gain traction.
Wall Street stayed strong despite the US Federal Reserve’s hawkish tone. Easing geopolitical tensions and a renewed surge in technology shares set the tone for global markets.
Supported by AI- and tech-stock demand, US equities closed higher amid optimism over an interim US-Iran peace agreement and strong gains in semiconductors.
The S&P 500 closed up 1.08%, the NASDAQ advanced 1.91%, and the Dow Jones ended the session 0.14% higher, as relief over the reopening of the Strait of Hormuz and robust performances from Intel (+10.64%), Nvidia (+2.95%), and Micron (+8.70%) outweighed hawkish signals from the Federal Reserve.
In Europe, the Euro Stoxx 50 closed up 0.37% as falling energy prices and reduced inflation risks buoyed sentiment, even as the FTSE 100 declined 1.04% on weakness in commodity-linked sectors.
Meanwhile, Asia-Pacific markets are trading lower amid caution over tighter US policy and the 60-day negotiation period over Iran’s nuclear programme.
The Hang Seng Index is down 1.59%, the Nikkei 225 gave back 0.25% and the ASX 200 fell 1.08% so far on softer resource prices.
The Johannesburg Stock Exchange (JSE) is set for a weaker open on Friday as global futures extend their overnight decline and risk appetite remains subdued across Asia, First National Bank (FNB) said in a brief.
Regional bourses are firmly on the back foot, with Tencent sliding 1.17% in Hong Kong, likely to weigh on Naspers and Prosus.
The S&P/ASX 300 Metals and Mining Index’s near 4% retreat further points to pressure on local resource shares. Gold and platinum are both under meaningful strain, a headwind for precious metals miners and PGM counters alike.
While progress in negotiations between the US and Iran remained a key feature in markets, the JSE ended its recent bullish streak on Thursday as investors weighed whether the 60-day window for talks on Iran’s nuclear programme could yield a nuclear accord and a more sustainable peace agreement.
In addition, expectations for higher interest rates following hawkish comments from the US Federal Reserve weighed on sentiment.
The All Share index and Top 40 Index declined 0.89% and 1.00% at 114 998 points and 106 956 points, respectively. Resources (-3.62%) reversed gains from the prior PGM rally, with Sibanye Stillwater (-7.05%) and Implats (-6.87%) falling sharply on the day.
Financials (+0.44%) extended gains from the previous session and Industrials (+0.39%) closed in the green despite a bumpy trade session. Global Equities Markets Rally on AI Momentum, SpaceX IPO Debut
