Markets mixed as strong US activity supports equities

Global markets were mixed on Monday as strong US economic activity supported equities despite elevated bond yields and renewed inflation concerns. The S&P 500 gained 0.70%, while the Nasdaq 100 rose 0.90% to a record 31 076 and the Dow added 91 points. Technology shares led the gains, with Nvidia and Broadcom both rising 2.10%. Alphabet gained 0.90%, Meta 1.90% and Microsoft 1.50%. Tesla advanced 2.20%, while SpaceX climbed 7.60% on reports of potential collaboration between Taiwan Semiconductor Manufacturing and Elon Musk’s Terafab initiative.

US private-sector activity strengthened markedly in September 2026, with the S&P Global Composite PMI reaching 58.4 points from 56 in August. The increase reflected stronger activity in both manufacturing and services, while a sharp rise in new orders pointed to continued strength in demand. Employment also accelerated, recording its fastest increase since June 2022 as businesses responded to heavier workloads. The stronger activity came alongside renewed inflationary pressure, however, with input costs rising at their fastest pace since October 2022 and companies increasing their selling prices at a faster rate.

The US 10-year Treasury yield rose to 5.35%, its highest level since April 2002. The yield has increased by 54.90 basis points (bps) over the past four weeks and 119.40 bps over the past year, as markets continued to absorb higher borrowing costs and inflation concerns.

Crude oil fell below $90 a barrel during the session as markets weighed easing supply pressures against renewed geopolitical risks. Saudi Aramco cut the November selling price of Arab Light to Asian buyers to $5 a barrel below the regional benchmark, while recovering flows through the Strait of Hormuz and the G7’s latest emergency stockpile release also weighed on prices. Supply concerns remain, however, while OPEC+ agreed to leave production quotas unchanged next month.

European equities mostly advanced, with the STOXX 50 gaining 0.20% and the STOXX 600 rising 0.30%. The DAX 40 was marginally higher at 25 254, while the FTSE 100 gained 0.30%. The CAC 40 fell 0.80% to 7 834 as concerns over France’s political and fiscal outlook persisted. Schneider Electric fell 10% after announcing its $22.6 billion acquisition of PTC, while Banco Santander gained more than 4%.

In Asia, Japan’s Nikkei 225 jumped 2.40% to 69 947, led by technology and financial stocks. Hong Kong’s Hang Seng Index gained 0.30% to 24 020, recovering from the previous session’s decline. Semiconductor and technology stocks led the rebound. Mainland Chinese markets remained closed for the National Day holiday period. The Shanghai Stock Exchange has been closed since 1 October, with normal trading resuming on Thursday, 8 October.

South African markets were mixed, with the JSE All Share Index edging 0.05% lower to 108 326.78. The Industrial 25 gained 0.62% and the JSE SAPi rose 0.34%, while the Financial 15 fell 0.66%, the Resources 10 declined 0.27% and Metals and Mining lost 0.67%. At 20h55 SAST, the rand strengthened 0.08% against the US dollar, 0.25% against the British pound and 0.42% against the euro, trading at R16.64, R21.99 and R18.66, respectively.

At 21h02 SAST, Brent crude fell 2.20% to $100 a barrel. Gold was broadly unchanged at $4 141.77 an ounce, while silver gained 1.31% to $61.19 and platinum rose 1.91% to $1 732.70.