Wall Street Slips on Tech Stocks Selloffs, FTSE 100 Gains
Wall Street slipped as AI and technology stocks faced significant selling pressure amid weak profitability, while European indexes climbed on easing tensions in the Middle East.
A sharp rotation out of US technology stocks defined global sentiment, sending the NASDAQ down 1.32% and the S&P 500 off 0.37%.
The lower market performance was informed by investors’ responses to steep losses in major tech names, with the Dow Jones closing up 0.29% amid broader strength elsewhere.
That negative lead set the tone in Asia, where the Nikkei 225 is currently down 1.66%, and the Hang Seng Index is down 1.13%, both pressured by inflationary concerns and growing expectations for the US Federal Reserve to hike rates.
The ASX 200 is also trading 0.36% lower. In Europe, lower energy prices and renewed optimism on US-Iran negotiations lifted the FTSE 100 by 0.72% and the Euro Stoxx 50 by 0.29%, with financials leading gains as sovereign yields retreated.
The JSE is set for a softer open this morning as global equity futures retreat alongside a risk-off tilt in Asian trade. Regional sentiment is unsettled by Tencent’s 3.42% decline, which is likely to weigh on Naspers and Prosus at the open.
In addition, the S&P/ASX 300 Metals and Mining Index fell over 1%, pointing to further pressure on local miners amid broad commodity weakness. Gold, platinum, and palladium all trade lower, adding to the headwinds for precious metals and PGM counters.
The local bourse saw a positive start to the week despite a bumpy trade session and closed in green territory, buoyed by improved investor sentiment, underpinned by progress in negotiations between the US and Iran to end their conflict within 60 days, amid a decline in oil prices.
The All-Share index and Top 40 closed with marginal gains of 0.11% and 0.16% at 112 730 points and 104 422 points, respectively.
Resources (+2.66%) rebounded well as PGM’s rallied and the precious metals and mining index rose 3.15%, bolstered by gains in heavyweight AngloGold Ashanti (+4.27%). Financials (-0.60%) and Industrials (-1.34%) bucked the trend and closed below the flat line. Global Equities Markets Rally on AI Momentum, SpaceX IPO Debut
