Global markets rise as lower yields and oil prices ease pressure

US equities extended their gains for a third consecutive session on Monday as Treasury yields eased and technology shares rallied. The S&P 500 rose 1%, while the Nasdaq 100 gained 2.30% to a three-month high, and the Dow added 0.50%. Lower credit costs supported expectations that artificial intelligence (AI) hyperscalers can continue issuing debt, benefiting chipmakers and AI infrastructure stocks. Intel, Advanced Micro Devices, Seagate, Marvell and Western Digital rose between 7% and 13%, while Meta surged 8% following positive responses to its Muse AI agent. Banks also edged higher as borrowing costs declined.

The dollar index edged up to 100.3, its highest level in almost three months, extending last week’s gain of nearly 1.10% as the greenback benefited from a more hawkish Federal Reserve (Fed) stance. The Fed raised rates by 25 basis points last week, while Chicago Fed President Austan Goolsbee said rates may need to rise if inflation does not resume its decline towards 2%. Minneapolis Fed President Neel Tushar Kashkari said inflation remained too high across the economy. Oil prices fell for a fourth consecutive session as diplomatic efforts raised hopes of easing tensions with Iran.

European equities also advanced, supported by lower sovereign yields and falling energy prices. The Euro STOXX 50 gained 1.30% to 6 318, while the STOXX Europe 600 rose 1% to 642. The DAX 40 gained 1.10% to 25 575, the CAC 40 rose 0.90% to 8 139 and the FTSE 100 added 0.80%. Banks, industrials and technology stocks led gains, while lower oil prices weighed on energy companies.

Asian markets were also firmer. The Shanghai Composite gained 0.97% to 3 949.9 and the Hang Seng Index rose 1.20% to 25 043, supported by technology and health technology shares. Japan’s stock market was closed on Monday and will remain closed till Wednesday for a series of national holidays, with trading scheduled to resume on Thursday.

South African markets were broadly steady, with the JSE All Share Index gaining 0.10% to 113 311.47. Financials rose 0.94% and industrials gained 0.49%, while resources fell 0.97%. The rand strengthened against the dollar, pound and euro, trading at around R16.25, R21.73 and R18.63, respectively. The 10-year government bond yield eased to around 8.78%.

Brent crude fell 3.32% to $100.42 a barrel, while gold declined 0.62% to $4 349.93 an ounce. Silver and platinum fell 0.33% and 0.06%, respectively.