Markets rebound amid stabilising commodities and global growth signals

US equity markets turned lower as sharp sell-offs in heavyweight technology stocks reignited concerns around stretched valuations, particularly among chipmakers and AI-linked names. The S&P 500 fell 0.50% after briefly testing record highs, while the Nasdaq 100 declined 1%, weighed down by semiconductor and AI names including Micron, Broadcom, Oracle, and Intuit, which dropped between 4% and 8%. Nvidia eased after tempering expectations on its investment in OpenAI, while AMD slipped ahead of its earnings release. By contrast, the more defensive Dow Jones Industrial Average remained unchanged, highlighting the relative stability of traditional sectors.

European equities reflected a similar caution, closing mixed as investors rotated out of high-growth technology stocks while supporting economically sensitive sectors. The Eurozone STOXX 50 eased 0.30% to 5 990 points, while the broader STOXX 600 held flat at a record high of 617. Technology shares tracked US losses following the North American open, whereas financials outperformed, benefiting from resilient rate expectations and providing broader market stability.

In Asia, equity markets mostly advanced, extending a rebound from prior losses as improving global sentiment and stabilising commodity prices supported risk appetite. Mainland Chinese equities led the region, with the Shanghai Composite up around 1.30% and the Shenzhen Component rising roughly 2.20%, buoyed by stronger metals prices and renewed dip-buying. Domestic activity also underpinned markets, with January manufacturing data showing accelerated production ahead of the extended Lunar New Year holiday. Japan’s Nikkei 225 climbed close to 4%, lifted by export-oriented and cyclical sectors, while broader Asian markets took cues from US macro data, with stronger-than-expected factory activity reinforcing confidence in global growth and corporate earnings prospects.

South African equities mirrored the global uptrend, closing higher as commodities recovered and risk sentiment improved. The FTSE/JSE All Share and Top 40 indices rose more than 1% each, led by resource stocks, while financials added support amid stable interest rate expectations. The rand strengthened modestly, firming to around R15.97/$ at the close of business from levels above R16.20 earlier in the session, tracking commodity gains and positive emerging-market sentiment following robust US macro data.

Commodity markets displayed mixed dynamics, with gold rebounding sharply around 3% as bargain-hunting returned after recent volatility, supporting local precious-metal producers and broader investor risk appetite. Oil remained relatively steady to slightly firmer, holding near recent ranges amid expectations of steady global demand and lingering geopolitical risks, though gains were limited by cautious trading sentiment. Overall, gold led commodity gains, while oil stabilised, reinforcing a broadly positive backdrop for resource-linked markets and underpinning equity momentum globally and locally.