Wall Street Rallies, European Stocks Slip as US Inflation Risks Ease
Wall Street rallied while European stocks slipped as global markets anticipate a slowdown in hawkish bets in the US amidst easing inflation risks.
Global equity sentiment remains dominated by a sharp reassessment of the multi-month rally in technology and AI-exposed names, which weighed heavily on both US and European indices.
The NASDAQ closed 0.66% lower, and the S&P 500 and Dow Jones ended the session 0.22% and 0.03% lower, respectively, as chipmakers led declines, First National Bank (FNB) said in a brief on Thursday.
However, investors cheered positive comments from US Fed Chair Kevin Warsh, which highlighted that inflation risks have eased in recent weeks.
The generally cautious tone carried over into Europe, where the Euro Stoxx 50 closed down 0.72%, and the FTSE 100 slipped 0.18%, both pressured by losses in semiconductor and energy stocks, despite softer Eurozone inflation tempering ECB rate hike expectations.
In Asia, the Nikkei 225 is currently down 1.92%, and the ASX 200 slipped 0.07%, reflecting the global tech pullback and local caution ahead of new trade data – Australia unexpectedly posted a trade deficit of AUD3.02 billion in May 2026, defying market expectations for a AUD2.2 billion surplus.
The Hang Seng Index has bucked the trend, up 1.19% on bargain hunting and renewed optimism about Chinese internet platforms, even as broader tech selling continues elsewhere in the region.
The Johannesburg Stock Exchange (JSE) is set for a cautious open this morning, as most Asian markets are trading in the red and global futures are mixed.
The S&P/ASX 300 Metals & Mining Index was broadly flat, suggesting a neutral lead-in for resource counters rather than a strong tailwind. However, firmer gold and platinum prices are likely to underpin precious metals and PGM miners, respectively, helping offset some of the drag from weaker Brent crude.
Tencent’s 1.54% gain should provide a constructive read-through for Naspers and Prosus. The South African local bourse closed weaker on Wednesday as the market remains sensitive to major central bank commentary on interest rates and movements in commodity prices.
The All Share Index ended the session down 0.64% at 109 613 points, while the Top 40 declined 0.65% at 101 276 points. Financials (-1.86%) remained under pressure, with ABSA falling by 4.35% and Standard Bank by 2.71%.
Industrials (-0.68%) weakened as heavyweight technology and consumer names came under pressure, while Resources (+0.84%) bucked the trend and extended gains from the previous session, benefitting from strength in the Precious Metals and Mining Index (+1.56%). https://googleads.g.doubleclick.net/pagead/ads?gdpr=0&us_privacy=1—&gpp_sid=-1&client=ca-pub-7758442096826763&output=html&h=600&adk=3636050380&adf=3476491103&pi=t.aa~a.3097799263~rp.1&abgtt=6&w=277&fwrn=4&fwrnh=100&lmt=1782984796&rafmt=1&to=qs&pwprc=8334252908&format=277×600&url=https%3A%2F%2Fdmarketforces.com%2F&fwr=0&pra=3&rpe=1&resp_fmts=4&asro=0&aimartd=4&aieuf=1&aicrs=1&fa=40&uach=WyJXaW5kb3dzIiwiMTUuMC4wIiwieDg2IiwiIiwiMTQ5LjAuNzgyNy4yMDEiLG51bGwsMCxudWxsLCI2NCIsW1siR29vZ2xlIENocm9tZSIsIjE0OS4wLjc4MjcuMjAxIl0sWyJDaHJvbWl1bSIsIjE0OS4wLjc4MjcuMjAxIl0sWyJOb3QpQTtCcmFuZCIsIjI0LjAuMC4wIl1dLDBd&dt=1782984796710&bpp=4&bdt=6397&idt=-M&shv=r20260701&mjsv=m202606260101&ptt=9&saldr=aa&abxe=1&cookie=ID%3D554c14f0a44083bf%3AT%3D1777446749%3ART%3D1782984792%3AS%3DALNI_MZDyIaTeFGQ42cX3MBJItktj_MGBQ&gpic=UID%3D000013b171ac5c4d%3AT%3D1777446749%3ART%3D1782984792%3AS%3DALNI_Ma-fq3z7ognA_ltGDK8JvkML56pug&eo_id_str=ID%3D724ebb82ef98c11e%3AT%3D1777446749%3ART%3D1782984792%3AS%3DAA-AfjaPe2r-dfmG0DjEuCz9fWCV&prev_fmts=0x0%2C1200x280%2C1200x280&nras=4&correlator=8006802735045&frm=20&pv=1&u_tz=60&u_his=4&u_h=720&u_w=1280&u_ah=672&u_aw=1280&u_cd=32&u_sd=1.6&dmc=16&adx=809&ady=1179&biw=1581&bih=731&scr_x=0&scr_y=750&eid=95395661%2C95373848%2C95393485&oid=2&psts=AOrYGslaij7qEwYsMx3zgRJzbSt46pj3xsLFe97gjtHMVaNzucVk3sOz28ceIJKIxrSD_3zXcwnLAkQuygVOerfitcJjiLvEaMAux8J3Tisqyqw37Q&pvsid=8809661863899928&tmod=1000751528&uas=0&nvt=1&fc=1920&brdim=0%2C0%2C0%2C0%2C1280%2C0%2C1280%2C672%2C1600%2C731&vis=1&rsz=%7C%7Cs%7C&abl=NS&fu=128&bc=31&bz=0.8&pgls=CAEQBRoFNC4xLjQ.&ifi=4&uci=a!4&fsb=1&dtd=154
CBN Drains N947bn from Financial System with OMO Bills Auction
