US, European Markets Rebound on AI Momentum
US and European markets rebounded despite geopolitical tension, driven by renewed investor sentiment in technology and AI stocks.
A broad-based rebound in semiconductor stocks drove the dominant overnight theme as investors returned to beaten-down chip names following last week’s sharp AI-driven selloff, First National Bank said in its morning brief.
In the US on Monday, the Federal Reserve (Fed) backdrop remained steady, but Middle East tensions and caution ahead of major technology earnings weighed on sentiment.
The S&P 500 slipped 0.19%, the Nasdaq Composite ended barely changed, and the Dow Jones Industrial Average fell 0.59%, with Apple and Tesla among the laggards even as Nvidia and Alphabet firmed.
European markets closed mixed, with the FTSE 100 down 0.71% while the Euro Stoxx 50 ended barely changed. In the Asia-Pacific this morning, Japan’s Nikkei 225 surged 2.67% after returning from a public holiday, led by a rebound in chip and bank stocks.
The Hang Seng Index is down 0.07%, and the ASX 200 is 0.11% softer, held back by lingering Middle East risk.
The Johannesburg Stock Exchange (JSE) is set for a flat-to-positive open this morning as a recovery in the tech space bolstered sentiment globally despite lingering uncertainty surrounding developments in the Middle East.
Most major futures are also trading in positive territory this morning. Tencent, however, is trading down 0.7% today, a mild negative read-through for Naspers and Prosus, which are likely to face some pressure at the open.
The S&P/ASX 300 Metals and Mining Index is up 1.1% today, lending support to resource counters on the JSE after a soft prior session for the mining sub-index.
On the commodities front, spot gold is sharply firmer, providing a constructive backdrop for gold miners, while spot platinum has also rallied meaningfully, offering additional support to precious metals counters. Brent crude is softer, which may weigh on energy-linked names but could ease broader cost pressures.
The JSE ended Monday’s session in negative territory with red screens across the board, in line with global markets, as sectors came under pressure after oil prices swung sharply amid the worsening US-Iran conflict.
The All Share Index and Top 40 closed lower, declining 0.58% and 0.60% at 108 936 points and 100 615 points, respectively. Resources (-1.08%) came under pressure with counters Kumba Iron Ore (-2.81%), Goldfields (-2.3%) and Northam (-2.08%) as notable detractors.
Industrials (-0.18%) added to losses from the previous session despite support from heavyweights Naspers (+1.87%) and Prosus (+2.96%), with Mondi (-3.94%), MTN Group (-3.93%) and TFG (-3.66%) dragging. Financials (-0.69%) followed suit as banks underperformed, closing the session below the line. #US, European Markets Rebound on AI Momentum#
