US, European Stocks Rally on AI Optimism, Upbeat Earnings
US and European stocks gained momentum on AI optimism; earnings expectations boosted demand for risky assets on Wednesday.
Market updates show AI optimism propelled developed-market equities, but uncertainty over Nvidia’s leadership reversed the tone in Asia, First National Bank (FNB) said in its morning brief.
Positive developments around CoreWeave and Anthropic reinforced confidence in the sector, while investors continued to grapple with growing expectations for further Federal Reserve hikes.
The NASDAQ closed 1.60% higher, the S&P 500 gained 1.31% and the Dow Jones ended the session up 0.49%. Strong technology earnings extended Europe’s rebound, with data-centre demand also supporting AI infrastructure names.
The Euro Stoxx 50 closed 1.04% higher, while commodity and bank strength lifted the FTSE 100 by 0.78%. The Hang Seng Index is trading 0.92% lower and the Nikkei 225 is flat as hawkish interest rate expectations continued to dominate the headlines. Australia’s ASX 200 closed 0.07% lower
In South Africa, the Johannesburg Stock Exchange (JSE) is set for a weaker open this morning, extending the previous session’s decline as global futures carry a negative bias and commodities retreat broadly.
With Asian markets trading mixed, softer Nasdaq and S&P futures are likely to overshadow marginal resilience elsewhere. Furthermore, Tencent is down 1.12%, weighing on Naspers and Prosus.
Pressure is also building across the resources complex, with the S&P/ASX 300 Metals and Mining Index down 2.28%, pointing to further weakness in JSE miners. Brent crude is trading lower, while declines in bullion, platinum and palladium leave gold miners and PGM counters without meaningful commodity support.
The JSE closed broadly lower yesterday as global headwinds weighed on sentiment.
Resources were the biggest drag, declining 1.44%, pressured by weakness in precious metals (-1.94%) as gold fell below the $4 000 per ounce mark after the previous day’s stronger-than-expected US October inflation data that saw core CPI rising 0.3% m/m versus expectations of 0.2%, reigniting expectations of a Federal Reserve rate hike in December.
This lifted the US dollar and Treasury yields while reducing the appeal of non-yielding bullion.
Industrials were also firmly in the red, declining 1.15%, while Financials fell 0.93% as South Africa’s sovereign yield curve shifted higher in line with the global repricing of interest rate expectations.
Ultimately, the All Share Index shed 1.08% to close at 113 449 points and the Top 40 fell 1.11% to 105 558. #US, European Stocks Rally on AI Optimism, Upbeat Earnings Nvidia Share Price Falls Amidst CEO Jensen Huang Scandal, Probe
