Trump remarks weigh on markets as higher yields offset AI rally

US President Donald Trump’s comments on Iran at the United Nations General Assembly added to market uncertainty on Tuesday, tempering hopes of a near-term diplomatic resolution and pushing Treasury yields higher. US equities were mixed as the rebound in borrowing costs offset continued strength in artificial intelligence (AI) companies. The S&P 500 and Dow Jones Industrial Average moved lower, while the Nasdaq 100 rose 0.50% to a record high. The US 10-year Treasury yield settled slightly higher at 4.97%.

Credit-sensitive banks led the losses, with JPMorgan, Wells Fargo and Morgan Stanley each falling around 4%. In contrast, AI-related shares extended their rally, with Meta rising 13% over the last two sessions following the strong reception for its Muse AI agent, while Micron gained 3% and Sandisk advanced following an upgrade from Rosenblatt Securities. The dollar index strengthened to 100.6, remaining near its highest level since late July 2026 as markets continued to assess expectations for further US rate hikes.

European equities closed marginally higher, supported by technology and consumer staple shares, while higher sovereign yields weighed on banks and insurers. The Euro STOXX 50 rose 0.20% to 6 332 and the STOXX Europe 600 gained 0.30% to 643.6. Germany’s DAX 40 was virtually unchanged at 25 579, France’s CAC 40 added 0.20% to 8 155, while the FTSE 100 fell after a volatile session. Technology shares led gains, although financials weakened as yields and energy prices rebounded.

Asian markets were mixed. The Shanghai Composite was little changed at around 3 952.1, while the Hang Seng Index gained 0.20% to 25 088. Japanese markets remained closed on Tuesday as part of national holidays and will remain closed through Wednesday, with trading scheduled to resume on Thursday.

South African markets were broadly steady, with the JSE All Share Index gaining 0.21% to 113 349.31. The Industrial 25 rose 1.42%, while financials fell 0.07% and resources declined 0.60%. The rand strengthened against the dollar, pound and euro, trading at around R16.17, R21.58 and R18.52, respectively.

While crude oil fell to $91.80 a barrel on Tuesday, extending its decline into a fifth session, Brent crude fell 1.24% to $99.10 a barrel, as markets assessed diplomatic efforts to end the conflict with Iran. Trump said he expected the US to reach a deal with Iran after the November mid-term elections, while reports indicated that Iran had proposed reopening the Strait of Hormuz within seven days if the US lifted its blockade.

Precious metals moved higher. At 21h35 SAST gold gained 0.63% to $4 370.57 an ounce, silver rose 2.27% to $67.53, and platinum increased 2.48% to $1 845.70.