Global stocks rally as gold hits record high

Wall Street extended its rally on Wednesday, with technology shares once again leading gains as investors parsed the Federal Reserve’s latest meeting minutes for policy clues amid a prolonged government shutdown. The S&P 500 climbed 0.60%, while the Nasdaq advanced 1.10% on strength in AI-linked megacaps and chipmakers. The Dow ended little changed, reflecting mixed sentiment across sectors.

The positive momentum carried over to Europe, where stocks climbed to record highs after two consecutive sessions of losses. Gains in banking and industrial shares drove the advance as investors weighed the impact of newly imposed EU tariffs. The Eurozone’s STOXX 50 rose 0.80% to 5 656, while the broader STOXX 600 gained 0.80% to 574. Financial firms led the uptrend, supported by a rally in government bonds across the bloc as markets reassessed fiscal risks tied to France’s political tensions and Germany’s rising debt levels.

Asian markets also joined the global rebound. Japan’s Nikkei 225 climbed 0.40% to above 48 100, while the broader Topix Index added 1% to 3 260, recovering from the previous session’s losses. The advance came as weaker-than-expected wage data eased expectations of an imminent Bank of Japan rate hike. Real wages fell 1.40% year-on-year in August, marking the eighth consecutive monthly decline as inflation continued to outpace income growth.

Back home, South African markets tracked global gains, closing sharply higher. The FTSE/JSE All Share Index rose 1.39% to 110 970 points, while the Top 40 Index gained 1.52%. Resource and mining stocks outperformed, boosted by soaring gold prices, while financials and industrials also advanced amid improving risk appetite. The rand strengthened about 0.40% against the dollar, and easing bond yields added further support for local equities.

In commodities, gold surged past $4 000 per ounce to a fresh record high as investors sought safety amid persistent uncertainty. The rally lifted gold and precious-metals miners, particularly those listed in Johannesburg. Oil prices also moved higher, with Brent crude up roughly 0.70% to $65.93 a barrel and WTI rising 0.80% to $62.24, supported by OPEC+’s decision to limit production increases and curb oversupply concerns.