Wall Street Climbs on AI Stocks Rally, European Markets Slip
Global markets delivered mixed performance, with Wall Street gaining on momentum in AI- and technology-linked stocks, while European indices slipped.
A sharp rotation out of technology and semiconductor stocks is dominating overnight trade, First National Bank (FNB) said in a brief on Tuesday, triggered by Samsung Electronics’ earnings release.
Despite a 19-fold jump in quarterly profit, Samsung failed to satisfy elevated market expectations.
The Nikkei 225 bore the brunt of the sell-off, falling 1.89%, as chip-related names tumbled on read-across concerns. The Hang Seng Index declined 0.42%, and the ASX 200 slipped 0.44% as mining and technology shares came under pressure.
The reversal is all the more striking given Monday’s session, when a revival in the AI trade lifted the NASDAQ 1.12% and the S&P 500 0.72%, with the Dow Jones Industrial Average adding 0.29% to close at a record above 53 000.
European markets were more cautious on Monday, with the FTSE 100 slipping 0.26% and the Euro Stoxx 50 declining 0.22% on reports chipmakers may further delay the full adoption of a chip packaging technology called hybrid bonding.
The Johannesburg Stock Exchange (JSE) is set for a softer open this morning as global futures point lower, tracking the technology-led sell-off across Asian markets.
However, Tencent is trading 2.74% higher in Hong Kong, a positive cue for Naspers and Prosus, which are likely to find support despite the broader market weakness.
The ASX 300 Metals and Mining Index fell 2.79%, suggesting that local resource counters are expected to remain under pressure – in addition, both gold and platinum prices are both trading lower this morning.
The JSE closed lower on Monday, retreating from gains in the previous session as lower global energy prices ease inflationary pressures and strengthen the South African Reserve Bank’s case to keep rates unchanged.
The All Share index and the Top 40 both closed 0.31% lower at 111 164 points and 102 791 points, respectively. Resources (-1.72%) lagged sharply as precious metal miners came under pressure, with counters DRDGold (-4.49%) and Harmony (-4.17%) having the largest declines.
Industrials (-0.16%) traded lower throughout the day, while Financials (+0.80%) managed to buck the trend, bolstered by gains in the Finance and Credit Services index (+4.37%) and banking stocks such as FirstRand, which gained 2.04% by market close. Global Markets Mixed with AI Stocks Dragging Trades, Indices
