Global markets rebound as oil prices ease and rate concerns moderate

The majority of global markets ended the week on firmer footing as oil prices pulled back from recent highs, easing some pressure on inflation and long-term bond yields. US equities recovered from four sessions of losses, with both the S&P 500 and Nasdaq 100 rising 0.90%, and the Dow Jones gaining 509 points. The move came as crude prices eased amid signs of potential diplomatic efforts around the Strait of Hormuz, although inflation remained elevated and markets continued to price a Federal Reserve rate hike when its Federal Open Market Committee meets on Wednesday, 16 September 2026.

US headline inflation held at 3.40% in August 2026, while higher energy prices continued to reinforce expectations of tighter monetary policy. Long-dated Treasury yields eased from recent multi-year highs, supporting equities. Oracle lost earlier gains, falling 1.80%, even after reporting strong cloud infrastructure revenue, while credit-sensitive sectors gained ground as the oil rally paused. Chipmakers moved higher, with AMD gaining 2.50% and Intel rising 2.60%. Dell surged 11.90% to an all-time high on RBC Outperform initiation. For the week overall though, the S&P 500 fell 0.60%, the Nasdaq lost 0.70%, and the Dow declined by 426 points.

European equities also recovered as energy prices and sovereign yields eased. The Euro STOXX 50 gained 0.80% to 6 323, while the STOXX Europe 600 rose 0.50% to 639.10. Industrials and technology stocks led gains, with Infineon rising strongly, while banks also benefited from the pullback in borrowing costs. Despite Friday’s gains, the Euro STOXX 50 and STOXX Europe 600 still ended the week 1% and 1.60% lower, respectively.

Elsewhere in Europe, and also supported by falling oil prices, Frankfurt's DAX 40 and the French CAC 40 both rose around 0.80%, while the UK’s FTSE 100 increased 0.40%, recovering from a seven-week low.

Asian markets ended the week lower, still suffering the effect of the previous session’s higher oil prices and global bond yields. Japanese equities remained under pressure as the Nikkei 225 fell 1.93%, China’s Shanghai Composite declined 1.18%, and Hong Kong’s Hang Seng fell 0.60%.

South African equities closed higher, with the FTSE/JSE All Share Index gaining 0.15% to 115 165.31 and the Top 40 adding 0.19%. Financials rose 0.56%, while Resources and Metals and Mining gained 0.17% and 0.10%, respectively. At 21h17, the rand strengthened 0.39% against the dollar to R16.14, 0.25% against the pound to R21.84 and 0.50% against the euro to R18.72.

Brent crude fell 2.56% to $104.87 per barrel as reported diplomatic efforts around the Strait of Hormuz raised the possibility of a temporary arrangement for shipping. The IEA also lowered its 2026 oil demand outlook, while OPEC cut its demand-growth forecast for the fifth consecutive time. Gold gained 0.86% to $4 352.79, silver rose 1.33% to $64.40 and platinum slipped 0.09% to $1 799.55.