Global equities fall as technology shares lead sell-off

US equities fell sharply on Thursday, giving back the previous session’s gains as investors sold technology shares following the Democrats’ victories in both chambers of Congress. The S&P 500 lost about 4%, the Nasdaq fell nearly 6% and the Dow Jones Industrial Average shed more than 1 500 points. Chipmakers led the declines, with Nvidia and Broadcom falling close to 9%, while Micron and Advanced Micro Devices dropped more than 15% each. Tesla and Applied Materials also lost more than 11.5%, while Lam Research declined over 14%. Among major technology companies, Microsoft fell more than 3%, Meta lost over 4% and Oracle declined more than 7.5%. Investors were concerned that tighter regulation of data centres and computing infrastructure could slow the expansion of facilities supporting artificial intelligence development.

The US 10-year Treasury yield declined to 4.83%, as the equity sell-off prompted investors to seek safer assets. Markets were also assessing the potential implications of the election result for technology investment. Attention now turns to today’s US employment report. Recent indicators have presented a mixed but relatively resilient picture, with private-sector employers adding 86 000 jobs in October 2026, according to ADP, while initial jobless claims fell to their lowest level in 57 years. Third-quarter productivity growth was also stronger than expected. Markets are pricing in an approximately 75% probability of a 25-basis-point Federal Reserve rate hike next month.

Crude oil recovered to around US$90 a barrel on Thursday, following a decline of more than 8% in the previous session. Traders continued to assess whether the Democrats’ congressional victory could improve prospects for a diplomatic resolution to the US-Iran conflict. However, supply concerns persisted after Iran’s Revolutionary Guard reported that two oil tankers and a tugboat had caught fire in separate incidents near the Strait of Hormuz.

European equities also weakened, with the Euro Stoxx 50 falling 0.90% and the Stoxx 600 declining 0.40%. Technology shares came under pressure, with ASML falling 7% and Infineon losing more than 10%. In Germany, Frankfurt’s DAX 40 lost 0.40% to close at 26 330 amid a sell-off in technology and defence stocks, with Rheinmetall plunging over 16% after lowering its full-year guidance. The UK’s FTSE 100 lost 0.50%, weighed down by defence and banking shares. France’s CAC 40, however, edged 0.30% higher, supported by gains in industrial and luxury goods stocks.

Asian markets were mixed. The Shanghai Composite gained 0.10%, supported by recent government measures aimed at stabilising the equity market, while the Hang Seng Index advanced 3.70% to a five-week high. Japan’s Nikkei 225 fell 1.79%, declining for a fourth consecutive session, with technology shares among the weakest performers. Toyota, however, surged 16.70% after raising its annual earnings forecast.

South African equities recorded broad gains. The JSE All Share Index rose 3.67% to 113 286.18, while the Top 40 advanced 3.99%. Resources gained 2.78%, Industrials rose 4.92% and Financials increased 4.08%. The rand weakened against the major currencies, with the US dollar gaining 0.33% to R16.47, the pound rising 0.32% to R22.19 and the euro advancing 0.34% to R18.50. The S&P Global South Africa Purchasing Managers’ Index remained at 49 points in October, below the 50-point threshold for a second month, indicating continued contraction in private-sector activity. Employment fell for a third consecutive month, while business confidence weakened.

At 20h18 SAST, Brent crude rose 3.64% to US$98.06 a barrel. At 20h16 SAST, gold gained 0.98% to US$4 099.85 an ounce, silver advanced 0.29% to US$52.37 and platinum increased 1.90% to US$1 526.90.