South Africa GDP boosts JSE as global tech sell‑off deepens

Market Commentary

Local equities found support on Tuesday following the release of stronger‑than‑expected economic growth data. South Africa’s economy expanded 1.90% year‑on‑year in 1Q26, up from 0.80% in 4Q25 and slightly above the 1.80% consensus. Against that backdrop, the Johannesburg Stock Exchange (JSE) All Share Index (ALSI) rose 0.04%, the Top 40 gained 0.07% and the Financials Index advanced 1.22%. By contrast, Resources and Metals and Mining fell 0.85% and 0.66%, respectively.

US equity markets slipped as the rotation away from mega-cap tech continued after a short pause. The S&P 500 fell close to 2% and Nasdaq 100 declined nearly 3%, while the more defensive Dow shed roughly 0.50%. Renewed selling in artificial intelligence (AI)-related names suggested some investors remain sceptical that the strong gains in chips and data-centre suppliers in recent quarters were fully justified, even as hyperscalers continue to signal ongoing demand for model-running infrastructure.

Market attention centred on OpenAI’s IPO filing and Anthropic's securing of additional private-credit funding, while Nvidia, Oracle and AMD shares fell by approximately 1% to 3%. Apple dropped around 3% after confirming its new Siri AI assistant will not launch in the Eurozone because of Brussels’ antitrust rules. Broader sectors found some support as easing energy prices helped Treasuries stabilise, while asset managers outperformed with Blackstone and KKR rising ~2%.

The US500 fell to 7 330 points, its lowest level since May 2026, bringing its decline over the past four weeks to approximately 1.05%. Investors now turn their attention to the upcoming US inflation data. Expectations for further monetary tightening strengthened, with markets now assigning roughly a 70% probability to a Federal Reserve rate increase at year-end.

European equities ended lower following the US sell‑off. The Euro STOXX 50 dipped 0.20% to 6 050 and the STOXX Europe 600 fell 0.40% to 619. Software and data‑centre‑related stocks were hit, with Infineon, SAP, Schneider, and Siemens Energy down between ~2% and 5.50%. Banks also weakened as markets priced in a likely European Central Bank (ECB) rate increase this week; Santander, ING and Nordea each lost about 1%. In London, GSK eased 0.50% amid reports it is in discussions to purchase oncology biotech NuValent.

The FTSE 100 slipped more than 1% to a three‑week low amid broad weakness across banking, healthcare and energy. Germany’s DAX 40 reversed earlier gains to close around 0.70% lower at 24 418.

Asian markets closed mostly higher, buoyed by a strong rebound in technology and semiconductor shares. Japan’s Nikkei climbed 2.17%, while China’s Shanghai Composite gained 1.24%. The Hong Kong Hang Seng, however, bucked the regional trend, slipping 0.29%.

Commodity markets were weaker: Brent crude plunged 4.49% to around $90 per barrel amid signs of de-escalation in the Middle East, although geopolitical risks remain elevated. Gold slipped 1.47% to $4 265.68 an ounce, its weakest since December 2025, while silver fell 4.28%.