Global markets rebound as tech recovers

Wall Street rebounded on Friday after steep losses a day earlier, as easing fears around AI-related disruption sparked a recovery in tech stocks. The S&P 500 rose 1.20%, the Nasdaq gained 1%, and the Dow jumped 810 points to a fresh record, according to Trading Economics. Strength in industrials, financials and real estate more than offset weakness in consumer discretionary. Semiconductor stocks led the rebound, with Nvidia up 3.10%, Broadcom gaining 3.50% and AMD jumping 5.10%. Broader mega-cap names also traded higher, including Apple (+1.40%), Microsoft (+1.50%), Tesla (+2.10%), JPMorgan (+3.20%), Oracle (+4.10%) and Bank of America (+1.60%). In contrast, Amazon slid nearly 9% after flagging $200bn in AI infrastructure spending for the year, a pace that outstripped growth in its cloud business, while Meta edged 0.7% lower. For the first week, the S&P 500 fell 2%, while the Nasdaq lost 4%, and the Dow remained broadly flat.

European stocks also staged a broad rebound after Thursday’s sharp declines, as investor anxiety around AI disruption and elevated software valuations began to ease. The Euro STOXX 50 climbed 1.20% to 5 998 points, while the STOXX 600 rose 0.90% to 617, according to Trading Economics. “Gains were led by technology, with ASML advancing nearly 4% to claw back earlier-week losses. Vinci rallied almost 10% after beating Q4 earnings expectations, while Rheinmetall rose 2% following a reassessment of its guidance, and Siemens Energy recovered from heavy losses earlier in the week. Stellantis, however, slumped nearly 20% after flagging a €22bn restructuring impact linked to accelerating its electric and hybrid rollout.”

Chinese equities extended losses for a second session on Friday as the global tech sell-off spilled into mainland markets. The Shanghai Composite slipped 0.25% to 4 066 and the Shenzhen Component fell 0.33% to 13 907, with weakness tied to AI-related spending concerns and volatility in metals and crypto dampening risk appetite. Trading Economics added that: “Chinese tech names were notably lower — Zhongji Innolight (-3.90%), Eoptolink Technology (-5%), Leo Group (-4.10%) and Cambricon Technologies (-2%) — while disappointing BYD sales data heightened pressure on China’s EV sector.” For the week, the Shanghai and Shenzhen indexes declined 1.27% and 2.11%, respectively. In contrast, Japanese stocks held up better: the Nikkei 225 rose 0.81% to close at 54 254, with the broader Topix also advancing, as domestic politics and firmer technology and consumer names supported gains despite regional volatility.

South African markets edged higher, with local equities rebounding as risk appetite improved amid broader emerging-market gains. The FTSE/JSE Top 40 index rose 1.37%, extending recent strength in domestic stocks even as global volatility persisted. Key sub-indices also advanced — the FTSE/JSE Industrial 25 gained about 1.48% and the financials index added roughly 0.45%. The rand strengthened against the US dollar in volatile trade, buoyed by firmer precious metal prices and higher net foreign reserves, which supported local asset prices. Despite global uncertainty in tech and commodities, South African equities showed resilience, reflecting selective investor demand for resource-linked and industrial names.

Commodities were mixed on Friday, with energy and precious metals showing divergent moves. Crude oil rebounded, with WTI at about $63.55 a barrel and Brent around $68.05, supported by geopolitical developments and improving risk sentiment. Gold surged nearly 4% to roughly $4 968.56 an ounce, boosted by soft US economic cues and safe-haven demand. Other commodities, including natural gas and select base metals, posted mixed results, highlighting ongoing volatility across global markets.