Global equities retreat amid AI concerns and rising oil prices

US equities fell on Thursday as concerns about the profitability of artificial intelligence (AI) companies intensified after a Financial Times report suggested OpenAI’s annualised revenue was below earlier estimates. The S&P 500 declined 0.50% and the Nasdaq fell 1.40%, while the Dow Jones Industrial Average gained 52 points. The report put OpenAI’s annualised revenue at US$50 billion, compared with the US$70 billion previously estimated, raising questions about the sustainability of investment in AI infrastructure. Nvidia fell 2.90%, Broadcom lost 4.60% and Micron declined 4.80%, while Oracle dropped 5.80%.

The US dollar index was little changed at 102.2, near levels last seen in April 2025, as expectations of interest rates remaining elevated continued to support the currency. Minutes from the US Federal Reserve’s September 2026 meeting indicated that most policymakers expected another rate increase this year, while Governor Christopher Waller said further hikes would likely be needed to return inflation to target. Markets priced in a 78% probability of rates remaining unchanged in October and a 69% chance of a 25-basis-point increase in December.

Crude oil prices edged higher towards US$91 a barrel during a volatile session as renewed Iranian attacks on tankers in the Strait of Hormuz threatened the recovery in regional supply, while Hurricane Isaias prompted production shutdowns in the Gulf of Mexico. Around 9.5 million barrels per day (bpd) passed through the strait in the week ended Tuesday, approximately 30% below pre-war levels. Producers also shut in about 500 000 bpd of offshore US production ahead of the storm.

European markets fell for a second consecutive session as rising sovereign bond yields intensified concerns about fiscal pressures and financial-sector stability. The Euro STOXX 50 declined 0.80% and the STOXX Europe 600 fell 0.70%. Germany’s DAX dropped 1.20%, the CAC 40 lost 0.50% and the FTSE 100 closed at 10 441. Banks were among the weakest performers, while Tesco gained 5.20% after raising its full-year guidance and increasing its share buyback programme.

Asian markets also weakened. China’s Shanghai Composite fell 0.79% following the reopening of mainland markets after the National Day holiday. The Hang Seng Index declined 1.40% to 23 786, while Japan’s Nikkei 225 fell 1.42% to 69 042. Technology shares were among the main drags as higher US Treasury yields and renewed inflation concerns weighed on sentiment.

In South Africa, the JSE All Share Index was virtually unchanged at 107 109.29, while the JSE Top 40 edged up 0.01%. Resources gained 0.97% and Metals and Mining rose 0.86%, partly offsetting a 0.82% decline in Financials. Manufacturing production fell 4.30% year-on-year in August, reversing July’s 1.10% increase, while output declined 3.10% month-on-month after rising 2.20% in July. The rand strengthened 0.13% against the US dollar to R16.62, 0.08% against the British pound to R21.97 and 0.09% against the euro to R18.62.

At 22h49 SAST, Brent crude rose 3.62% to US$103.83 a barrel and gold gained 0.32% to US$4 123.70 an ounce. Silver fell 1.87% to US$59.02 an ounce, while platinum declined 0.30% to US$1 644.90 an ounce.