Wall Street, European Stocks Surge on Macro Shifts, AI Bets
Wall Street and European equity indices gained momentum as global markets turned positive on renewed buying in technology and AI stocks.
The market experienced renewed buying interest after the US Treasury announced plans to double down on its bond buybacks in September 2026.
The decision bolstered investor sentiment toward risky assets, with buying interest seen in US stocks and among top cryptocurrencies.
Hence, Wall Street closed positive despite reporting overall weekly declines, with the S&P 500 and NASDAQ each up 0.43% and the Dow Jones climbing 0.98%.
The performance was aided by stronger-than-expected S&P Composite data, which showed continued expansion in business activity despite lingering concerns about elevated yields.
In Europe, the FTSE 100 ended the week 0.64% higher on strong metals and services sector momentum, while the Euro Stoxx 50 gained 0.63%, both reflecting sector rotation and resilience in private sector output.
On Monday, Hong Kong’s Hang Seng Index is down 2.09%, with a sharp decline in Alibaba (-9.11%) following its discounted share placement to fund artificial intelligence expansion.
That cautious sentiment is mirrored in the Nikkei 225, off 0.57%, while the ASX 200 is trading up 0.40%, with gains in materials and healthcare offsetting pre-inflation-report nerves.
The South African Johannesburg Stock Exchange (JSE) is set for a softer open this morning after a firmer prior session, as global equity futures retreat and Asian sentiment turns defensive.
Stockbrokers said major indices in the region are under pressure, with Chinese stocks falling to a five-week low and Tencent sliding 3.76% in Hong Kong, a move that may weigh on Naspers and Prosus at the open.
That said, a modest rally in Australian miners, with the ASX 300 Metals and Mining Index up 0.40%, offers a supportive backdrop for local resource counters even as iron ore weakens.
Gold continues to provide a tailwind for precious metals miners, offsetting some of the broader market caution.
The local bourse ended the week on a positive footing on Friday, in line with global markets, as investors sought exposure to gold and defensive mining names.
The All Share Index and Top 40 advanced 1.81% and 2.07% to 117,748 points and 110,387 points, respectively.
Resources (+4.80%) dominated as the Precious Metals & Mining Index surged 5.38%, supported by gains in Harmony (+7.32%), Valterra (+5.89%) and Implats (+5.7%).
Financials (+0.30%) rose modestly, buoyed by gains in FirstRand (+1.56%) and Capitec (0.65%), while Industrials gained 0.61% despite losses in several technology- and consumer-exposed counters, including Datatec (-2.28%), Bytes (-1.79%), and WeBuyCars (-2.39%).
