Markets higher as bond yields pause and technology shares rebound

US stock indices closed higher on Tuesday as a pause in the recent rise in bond yields eased pressure on technology shares. The S&P 500 and Nasdaq 100 each gained 0.60% and 0.50%, respectively, reaching new record highs, while the Dow Jones Industrial Average added 253 points. Artificial intelligence (AI) infrastructure and hyperscaler stocks were mostly firmer, with fresh deals supporting demand for the sector. Advanced Micro Devices rose 2.80% after its CEO indicated strong chip demand in the coming years, while Microsoft and Amazon gained 0.80% and 1.90%, respectively. Alphabet added 0.30% ahead of an agreement to acquire nuclear energy capacity from Constellation Energy, whose shares rose 12.20%.

Crude oil recovered from an earlier decline to trade around $89.50 a barrel after falling below $87 during the session. Supply concerns resurfaced following reports of increased attacks on tankers transiting the Strait of Hormuz, while improving supply flows continued to weigh on prices. Saudi Arabia’s East-West pipeline restored crude pumping capacity to 5.8 million barrels per day, while G7 countries have agreed to release 100 million barrels of diesel and crude from emergency reserves. Despite these measures, the US Energy Information Administration (EIA) raised its Brent crude forecast for 4Q26 to $105 a barrel, $14 above its previous forecast.

European markets also ended higher as sovereign yields paused their recent rise. The Euro STOXX 50 and STOXX Europe 600 each gained 0.50%, while the DAX, CAC 40 and FTSE 100 rose 0.77%, 0.40% and 0.46%, respectively. Banks were among the stronger performers, with BNP Paribas gaining 2.50% and UniCredit, Santander and Deutsche Bank each adding 1.50%. Schneider Electric fell 4.50% after agreeing to acquire US software company PTC for $22.6 billion.

Asian markets followed Wall Street higher, with the Hang Seng Index rising 1% to 24 281 and the Nikkei 225 gaining 1.05% to 70 684. Technology and AI-related shares led gains in both markets, while softer oil prices provided additional support. Mainland Chinese markets remained closed for the National Day holiday. The Shanghai Stock Exchange is observing its annual multi-day closure from 1 to 7 October, with trading scheduled to resume on 8 October.

In South Africa, the JSE All Share Index gained 0.51% to 108 881.47, while the JSE Top 40 rose 0.48% to 101 162.20. The JSE Industrial 25 and Financial 15 increased 0.84% and 1.49%, respectively, while the JSE Resources 10 and Metals and Mining indices declined 0.75% and 0.95%. The rand strengthened against the major currencies, gaining 0.61% against the US dollar to R16.54, 0.19% against the pound to R21.96 and 0.25% against the euro to R18.63.

At 22h01 SAST, gold was 0.72% higher at $4 169.46 an ounce and silver gained 0.63% to $61.44, while platinum declined 0.37% to $1 717.40. Brent crude was 0.68% higher at $101 a barrel.