Global markets mixed as tech weakness, geopolitics and macro data drive divergence

Market Commentary

US stocks ended mixed on Monday as investors tracked developments in the Middle East and weighed prospects of a potential US-Iran deal. The S&P 500 slipped 0.10%, and the Nasdaq fell 0.50%, while the Dow Jones added 160 points, reflecting a split between cyclical strength and tech-sector weakness driven by chip-related pressure and select mega-cap losses. Technology was the weakest-performing sector after cautious commentary from Seagate CEO on industry capacity expansion weighed on sentiment across the semiconductor space. Seagate fell nearly 7%, and Micron dropped 6%, while Nvidia, Apple, Meta and Broadcom also closed lower. Tesla declined 2.90% amid concerns linked to the planned SpaceX IPO and potential competition for investor capital, according to Trading Economics.

European equities closed higher, recovering some ground as investors continued to assess macroeconomic headwinds and their implications for regional earnings. The Euro STOXX 50 rose to 5 832 points, while the STOXX 600 advanced 0.30% to 609, supported by selective strength in financials and corporate flows. Geopolitical uncertainty remained in focus, with US-Iran tensions and the Strait of Hormuz keeping energy prices elevated and sovereign yields firm. Financials led gains, with Allianz, Nordea, AXA and Munich Re all rising more than 1%, while Deutsche Börse surged 5% after reports that TCI increased its stake in the exchange operator. In contrast, ASML fell 3.20% amid broad weakness in AI-related infrastructure stocks.

Chinese equities edged lower on Monday as a series of weaker-than-expected data reinforced concerns over slowing economic momentum. New home prices fell 3.50% year-on-year in April 2026, fixed-asset investment declined 1.60% in January–April, retail sales rose just 0.20%—the weakest since December 2022—and industrial production slowed to 4.10%, its softest pace since July 2023. The urban unemployment rate eased to 5.20%. The data point to broad-based weakness, though raising expectations of eventual policy support ahead of the Politburo meeting in July.

South African markets were broadly steady, with the rand subdued in early trade as investors awaited domestic data and global cues. The FTSE/JSE All Share Index edged 0.32% higher on the day. Sentiment remained constrained by a firmer US dollar and higher oil prices, which capped risk appetite and left resource counters more sensitive than defensives.

Commodity prices were mixed, with energy leading the market and precious metals easing. Brent crude traded around $109.57 a barrel, while WTI was near $107 a barrel in midday trade, supported by geopolitical tensions and a firmer near-term risk premium. Bullion prices softened slightly, with COMEX gold around $4 538.70, as the dollar held firm and some investors trimmed exposure after the metal’s strong run. According to analysts, the broader commodities backdrop still looks constructive, but gains remain uneven across asset classes rather than broad-based.