US tech pullback weighs on global markets

US markets recovered on Thursday as easing pressure on artificial intelligence (AI) infrastructure stocks helped lift sentiment. The S&P 500 rose 0.30%, while the Nasdaq Composite finished little changed and the Dow Jones Industrial Average gained 557 points. Comments from Nvidia CEO Jensen Huang helped ease concerns surrounding CoreWeave, whose business model is being closely watched as a test of whether companies supplying AI computing capacity can sustain their growth. CoreWeave advanced 5.90%, while Nvidia fell 1.80%, amid continued scrutiny of the heavy borrowing and supplier-backed financing used to fund AI infrastructure.

Gains among major technology companies also supported the recovery, with Microsoft rising 1.10% and Oracle adding 3%. Semiconductor shares were mixed: Micron gained 1.90%, while Broadcom and Advanced Micro Devices fell 0.60% and 1.50%, respectively. The Dow also benefited from stronger demand for US Treasuries, which helped reverse some of the recent pressure on government bonds that had pushed yields to multi-year highs.

European markets closed mixed on Thursday, with weakness in chipmakers and banks weighing on some indices. The Euro STOXX 50 fell 0.40%, while the broader STOXX Europe 600 gained 0.30% to 640. An unexpected decline in eurozone industrial production in August 2026 added to concerns over higher energy costs, interest rates and competition from Chinese imports. Chipmakers ASML and Infineon fell 4.20% and 5.20% respectively, while Nordea dropped 7.80% after weaker profits led it to suspend its share buyback. Gains in L’Oréal, SAP and other stocks helped limit the broader decline. 

The FTSE 100 rose 1% to 10 840, its highest level since late August, as defensive shares supported London’s outperformance. Pharmaceutical stocks led the gains, with AstraZeneca up more than 3% and GSK nearly 3% higher, while Unilever and British American Tobacco also advanced. Mining shares lagged, however, after Antofagasta missed copper production estimates and lowered its 2027 outlook.  

Asian markets came under heavy pressure on Thursday as the technology sell-off gathered pace, with sharp losses among chipmakers weighing on regional indices. Japan’s Nikkei 225 fell close to 5%, the Shanghai Composite lost 1.59%, while the Hang-Seng declined by 1.37%. Samsung Electronics dropped between 9.70% and 11.40% and SK Hynix lost as much as 12% amid concerns about growing competition in the memory chip market. In Japan, SoftBank Group fell nearly 10%, while Tokyo Electron declined by about 7.50% and Kioxia Holdings lost more than 11%. Taiwan Semiconductor Manufacturing Company (TSMC) also slipped 2% ahead of its earnings results. 

South African equities advanced on Thursday, with the JSE All-Share Index rising 1.53%. JSE Metals and Mining led the gains with the index climbing 2.60%, followed by the Resource 10 at 2.08% higher. The rand also strengthened trading at R16.51 against the US dollar, providing some relief after earlier pressure on local markets. Positive corporate updates added to the market’s momentum, including PSG Financial Services’ interim results for the six months to the end of August, which showed 5% growth in headline earnings. 

Crude oil rose above $98 a barrel on Thursday, its highest level in a month, as fears of Middle East supply disruptions intensified. Attacks on commercial vessels in the Strait of Hormuz, including the sinking of a Singapore-flagged container ship, heightened shipping risks and pushed Persian Gulf tanker rates to record highs. This also cast doubt on whether Gulf Cooperation Council countries could lift oil exports in the near term. In the US, crude inventories fell by 8.6 million barrels, the largest weekly drop since February, while the Strategic Petroleum Reserve remained close to its lowest level on record. In the meantime, Brent crude oil dropped 0.10% to $105.95 per barrel.

Precious metals rallied with gold trading at $4 158.57 an ounce, up by 1.30%, while silver surged 2.65% and platinum advanced by 1.01%.