Wall Street, FTSE 100 Surge as AI Shares Gain Momentum
Wall Street and the FTSE 100 climbed as demand for shares in Artificial Intelligence (AI)- linked companies drove momentum across global markets, supported by easing oil prices.
Renewed enthusiasm for AI shares lifted risk appetite, even as investors assessed the borrowing required to fund infrastructure spending and awaited the Federal Reserve’s policy meeting.
The S&P 500 closed 0.70% higher, the NASDAQ gained 0.82%, and the Dow Jones added 0.28%, with technology names leading the advance, stockbroking and portfolio management subsidiary of First National Bank (FNB) said in a brief.
Falling oil prices also supported Europe, benefiting travel and leisure stocks while weighing on energy shares. The Euro Stoxx 50 closed up 0.79%, while the FTSE 100 gained 0.72%, further supported by defence stocks and sustained AI related demand.
Asian trading is more uneven this morning. The Nikkei 225 is up 1.91% as safe-haven demand fades and the yen weakens, while the Hang Seng Index is down 0.14% as losses in healthcare, consumer, and manufacturing shares offset technology gains.
Australia’s ASX 200 closed 0.46% higher, despite caution ahead of inflation data and concerns that price pressures remain above the Reserve Bank of Australia’s target.
The Johannesburg Stock Exchange (JSE) is likely to open flat to positive this morning after closing higher in the previous session, supported by a generally positive tone across Asian markets despite global futures showing little conviction.
Tencent’s 0.16% advance offers a modestly positive read-through for Naspers and Prosus, while renewed optimism around AI may entice investors to re-enter or top up positions.
On the resources side, the 2.93% surge in the S&P/ASX 300 Metals & Mining Index strongly supports local miners, though the broader commodity picture is less encouraging.
Brent crude is retreating from elevated levels, while gold is easing. More pronounced weakness in platinum and palladium could weigh on PGM counters, tempering the constructive signal from Australian miners.
The JSE closed firmly in the green on Monday, snapping a three-day losing streak as global risk appetite returned ahead of the US Federal Reserve’s interest rate decision on Wednesday.
The All Share gained 1.03% to close at 109 130, while the Top 40 rose 0.99% to 100 977.
Financials were the standout sector, surging 1.53%, driven by broad-based buying in banks (+1.49%) as investors positioned ahead of the Fed meeting, as a rate hold or dovish signal would support emerging market financial stocks.
Resources also had a strong session, up 1.28%, with precious metals miners (+1.70%) benefiting from higher gold prices.
Meanwhile, base metals gained support as copper advanced on renewed optimism about AI-related demand. Industrials lagged the broader market, adding a modest 0.23%. Nigeria’s US Dollar Bonds Dumped as 10-Year Yield Surges to 8%
