Global equities rebound as technology shares recover

US equities rebounded on Monday following last week’s sharp sell-off, with the S&P 500 gaining 2.30%, the Dow Jones Industrial Average rising 1 104 points and the Nasdaq advancing 2.70%. Semiconductor shares led the recovery as investors returned to technology stocks after Friday’s losses, which had reflected concerns about the outlook for artificial intelligence (AI) investment and the prospect of tighter regulation under a Democrat-controlled Congress. Advanced Micro Devices surged 13.30% after receiving an upgrade from Oppenheimer, while Broadcom gained 8.80%, Lam Research 10.40%, Micron 6.20%, and Applied Materials 11.40%. Nvidia moved in the opposite direction, falling 4.30%. Among the major technology companies, Meta rose 5.10%, Microsoft 2.70%, and Amazon 2.90%, while Alphabet gained 1.20% as it expanded its range of AI chips.

US consumers’ median inflation expectations for the year ahead remained at 3.90% in October 2026, unchanged from September and at their highest level since 2023, according to the Federal Reserve Bank of New York’s Survey of Consumer Expectations. Expectations for food prices were unchanged at 5.50%, while those for petrol eased to 4.20%. By contrast, expected price increases for rent rose to 7.70%, medical care to 9.30%, and college education to 7.60%. Longer-term inflation expectations were also unchanged, at 3.30% over three years and 3% over five years. Meanwhile, expectations for unemployment to increase rose by 1.40 percentage points to 45.30%, their highest level since April 2020.

European markets also recovered, with the Euro Stoxx 50 gaining 1.90% and the Stoxx Europe 600 rising 1.30%. Banking and technology shares supported the advance. UniCredit climbed nearly 7% after reporting strong earnings and indicating that it could take control of Commerzbank by month-end. AI-related shares also rebounded, with ASML up 4.70% and Infineon 6.20%. Germany’s DAX 40 gained 1.70%, France’s CAC 40 rose 1.20%, and the UK’s FTSE 100 advanced around 1%. Lower oil prices and reduced concerns about further military escalation in the Middle East also supported sentiment. In the UK, employers reduced recruitment in October for the first time in four months.

Asian markets were mixed. The Shanghai Composite gained 0.32% as China extended the suspension of additional tariffs on US goods until January, while annual consumer inflation eased to 0.70% in October. The Hang Seng Index slipped 0.10%, with losses in selected heavyweight shares offsetting a recovery in technology stocks. Japan’s Nikkei 225 rose 2.33%, recovering some of last week’s more than 9% decline, as banking, retail, and automotive shares advanced.

South African equities recorded broad gains on Monday. The JSE All Share Index rose 2.04% to 115 037.93, while the Top 40 advanced 2.27%. Resources gained 4.64% and Metals and Mining climbed 5.77%, leading sector performance. Industrials rose 1.31% and Financials 0.77%. The rand strengthened by 0.86% against the US dollar to R16.37, by 0.21% against the pound to R22.00 and by 0.14% against the euro to R18.38. Against the dollar, the rand traded close to its strongest level since late September. Firmer precious metals prices, a weaker US dollar and lower oil prices provided support. Domestically, investors continued to assess the local government election results, with the ANC’s national share of the vote falling to 30.76% from 45.59% in 2021.

At 21h10 SAST, Brent crude fell 4.78% to US$93.62 a barrel. At 22h12, gold rose 1.77% to US$4 137.31 an ounce, silver gained 2.91% to US$53.37 and platinum advanced 2.67% to US$1 577.55 an ounce.