Technology gains lift US equities as Fed rate-hike expectations ease

US equities closed higher on Thursday as softer-than-expected producer price data reinforced expectations that the Federal Reserve (Fed) will hold rates steady at next month’s meeting. The S&P 500 climbed 0.65% to a fresh record close of 7 798.99, while the Nasdaq Composite advanced 0.81% to 26 803.03 and the Dow Jones Industrial Average added roughly 70 points. Headline producer prices were flat in July 2026, missing forecasts for a 0.20% rise, while core PPI increased by only 0.20%, below the 0.30% expected; coming a day after a benign CPI print, the figures eased recent worries about more hawkish messaging from Fed officials and helped consolidate market bets on a September pause.

Technology shares led the advance, with chip names tracking strength in South Korean peers: Micron rose 4.20%, Intel and Marvell posted solid gains, and SanDisk surged 13.70%. Sentiment was further supported by reports that Anthropic is pursuing an initial public offering and is in talks to acquire AI startup Decart for about $6 billion, underscoring continued confidence in AI-related capital expenditure. Laggards limited the Dow’s advance, however: banks and industrials pulled back, with Bank of America down 1.10% and RTX falling 1%, while Cisco slumped 8.40% after forecasting a slowdown in AI data centre-related sales for the current fiscal year.

European markets were mixed. The Euro STOXX 50 gained 0.20%, while the STOXX Europe 600 edged lower to 659. ASML advanced 2.70% and Adyen surged 16.40% after raising its revenue forecast, while Maersk gained 9.40% after exceeding profit expectations and raising its full-year guidance. Germany's DAX 40 declined marginally to 26 292, while France's CAC 40 fell 0.30% to 8 651 as weakness in luxury and industrial stocks weighed on the index. London's FTSE 100 fell more than 0.50% as declines in commodity-related shares offset stronger-than-expected UK economic data.

Asian markets were mixed. China's Shanghai Composite fell 0.50% and the Shenzhen Component declined 0.87% as investors remained underwhelmed by the latest policy-support measures. Japan's Nikkei 225 rose 1.16% to 68 308, with technology and financial shares leading gains.

South African equities ended lower on Thursday. The FTSE/JSE All Share Index declined 0.75% to 114 115.15 points, while the Top 40 Index fell 0.90%. Resource shares underperformed, with the Resources 10 Index falling 3.13% and Metals & Mining declining 3.41%, while financials gained 0.74%. The rand weakened 0.30% against the US dollar to R16.19, 0.24% against the British pound to R21.84, and 0.34% against the euro to R18.67. South Africa's 10-year government bond yield eased to around 8.58% from an over one-week high of 8.61%.

Commodity markets were lower. At 21h08 SAST, Brent crude oil declined 2.19% to $87.03 per barrel. Gold fell 1.26% to $4 351.38 per ounce at 21h34 SAST, while silver declined 1.39% to $64.39 per ounce and platinum eased 2.58% to $1 723.70 per ounce.