AI trade fuels record run in global stocks

US equities notched new record highs on Thursday as optimism around artificial intelligence continued to buoy sentiment, even as the government shutdown entered its second day. The S&P 500 edged up 0.10%, the Nasdaq gained 0.40%, and the Dow Jones Industrial Average added 80 points. Tech shares led the advance following renewed buzz around OpenAI, while political tensions in Washington remained in focus after President Trump threatened to cut thousands of federal jobs to pressure Democrats during the funding impasse.

In South Africa, the rand held steady as investors awaited clarity on whether the US would renew its flagship trade initiative with Africa, which expired earlier in the week. Market watchers were also assessing how the shutdown might delay economic data releases and influence the Federal Reserve’s policy trajectory. On the domestic front, vehicle sales provided a bright spot, jumping 24.30% year-on-year in September to 54 700 units—the strongest September figure since 2015. Passenger car sales surged 28% to 38 603, their highest since October 2014. Light commercial vehicles rose nearly 20%, while sales of heavy trucks and buses gained 5.90%. Medium truck sales, however, slipped 1.90%.

European markets extended their rally to record territory, supported by strength in technology and infrastructure-linked stocks. The Eurozone’s STOXX 50 climbed 1.3% to 5 651, while the broader STOXX 600 advanced 0.60% to 568. Optimism was boosted after OpenAI raised $6.6 billion in a share sale, valuing the company at $500 billion, alongside a partnership with South Korean chipmakers to expand AI-related capacity.

In Asia, Japan’s Nikkei rose 0.87% to 44 937, breaking a four-day losing streak as chipmakers rebounded in line with Wall Street’s tech-led gains. Despite lingering concerns about the US shutdown, sentiment was supported by robust capital spending and hopes for further Federal Reserve rate cuts.

Commodities painted a contrasting picture. WTI crude oil futures dropped more than 2% to $60.5 a barrel, their lowest level in four months, extending a string of declines. The sell-off came as OPEC+ prepared to approve a November output increase of up to 500 000 barrels per day, triple October’s hike, with Saudi Arabia aiming to claw back market share. A Bloomberg survey showed OPEC’s output already ticked higher last month as Saudi Arabia restored previously suspended supplies, fuelling concerns about oversupply.