Technology shares lead US equity rebound

US equity markets moved higher on Monday, with technology shares leading the recovery following recent pressure on the artificial intelligence (AI) sector. At 17h42 SAST, the Dow Jones Industrial Average had gained 0.18% to 52 093.44, while the S&P 500 rose 0.89% to 7 727.91. The Nasdaq Composite advanced 1.78% to 26 603.96. The session coincided with the 39th anniversary of Black Monday, the 1987 crash that recorded the largest single-day percentage decline in the Dow’s history.

Technology and consumer discretionary shares led S&P 500 sector gains, rising 2.20% and 2.80%, respectively. Intel climbed 5.80% after JP Morgan upgraded its rating, while Cleveland-Cliffs rose 15.60% after reporting third-quarter profit above analysts’ estimates.

European equities closed lower as renewed civil unrest in France and Italy added to political and fiscal uncertainty. The Euro Stoxx 50 fell 1% to 6 141, while the Stoxx Europe 600 declined 0.90% to 639. Rising government bond yields across the eurozone added to concerns about sovereign debt risks, with banks among the weakest performers. Deutsche Bank, BNP Paribas, Santander, UniCredit and Intesa Sanpaolo all fell by more than 2%. Germany’s DAX declined around 1.20% to 25 320, while France’s CAC 40 lost 1.10% to 7 868. In the UK, the FTSE 100 fell more than 1%, ending a three-session winning streak as banking and mining shares weakened. Investors are also looking ahead to UK inflation and retail sales data due this week.

Asian markets were mixed. China’s Shanghai Composite gained 0.39% as stronger-than-expected third-quarter economic growth and improved industrial output and retail sales supported sentiment. The economy grew 4.50% year-on-year in 3Q26, compared with 4.30% in the previous quarter. Japan’s Nikkei 225 fell 0.62%, with technology shares remaining under pressure amid questions over returns from AI infrastructure spending. Hong Kong’s stock exchange was closed for the Chung Yeung Festival holiday, with trading scheduled to resume today, 20 October.

In South Africa, the JSE All Share Index lost 1.75% to end trading at 108 994.98, while the Top 40 fell 1.90%. The Resource 10 declined 3.32%, and the JSE Metals and Mining index moved 2.93% lower. The rand strengthened against all three major currencies, gaining 0.37% against the US dollar to R16.42, 0.52% against the pound to R21.86, and 0.58% against the euro to R18.42. At 19h17 SAST, Brent crude gained 0.31% to trade at US$110.20 a barrel, while gold fell 0.50% to US$4 144.35 an ounce. Silver rose 0.42% to US$57.24 and platinum gained 1.14% to US$1 651.75 an ounce.

South Africa’s 10-year government bond yield was reported at around 8.90%, near one-month lows, as investors considered the fiscal outlook ahead of Finance Minister Enoch Godongwana’s mid-term budget update on Wednesday, 21 October. September 2026 inflation data is also due on the same day, following the South African Reserve Bank’s 25-basis-point repo rate increase to 7.25% last month.