US equities rebound as lower oil prices ease inflation concerns

Global markets recovered on Tuesday as lower oil prices eased near‑term inflation concerns and helped push longer‑dated US Treasury yields down from recent highs. Investors continued to weigh the outlook for artificial intelligence (AI) investment and US monetary policy, while developments around Iran and the Strait of Hormuz remained a key focus.

US shares closed higher, led by a rebound in technology stocks. The S&P 500 added 0.30%, the Nasdaq Composite climbed 0.70%, and the Dow Jones Industrial Average gained roughly 160 points, with companies tied to AI infrastructure recovering after a wobbly session amid lingering uncertainty around the sector. Expectations of potentially very large IPOs from hyperscalers investing heavily in AI build‑out, including Anthropic and OpenAI, supported chipmakers and cloud names: Nvidia rose 2.20% ahead of its closely watched earnings report on Wednesday, while Microsoft gained 0.90%, Meta advanced 2%, Micron added 2.50%, and AMD jumped 4.90%.

The yield on the 10‑year US Treasury note eased to 4.65% from the 20‑month high of 4.75% reached on 21 August 2026, as lower energy prices reduced near‑term inflation concerns. Longer‑term yields remained elevated, however, amid worries over fiscal deficits, heavy debt issuance and the scale of Treasury buy‑backs. Attention now turns to Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium for further guidance on the monetary policy outlook. The US dollar index also remained under pressure following its recent decline.

European shares rose as investors took comfort from a softer‑than‑feared US sanctions package on Iran and falling oil prices, with heavyweight industrials and healthcare stocks lifting the benchmark. According to Reuters, the pan‑European STOXX 600 closed 0.35% higher at 656.48 points (9h32 AM GMT+2) leaving it just 0.60% shy of the record high set earlier this month, while the EURO STOXX 50 Index edged up 0.12% to 6 455.63.

The healthcare sector led gains with a 1.20% rise. Novo Nordisk advanced 2.90% after JPMorgan raised its price target for the Danish obesity‑drug maker, citing increased long‑term sales forecasts, while peer Zealand Pharma climbed 5.60%. Luxury stocks lagged the broader advance. Germany’s DAX 40 advanced 0.60% to 26 266, while France’s CAC 40 fell 0.20% to 8 439. London’s FTSE 100 gained 0.30%, supported by mining shares, while lower oil prices weighed on energy stocks.

Asian markets were mixed. China’s Shanghai Composite rose 0.19%, while the Shenzhen Component declined 0.35% as technology shares remained under pressure. Japan’s Nikkei 225 gained 0.50% to 65 856, while the broader Topix also advanced. Investors continued to focus on Nvidia’s upcoming results and the outlook for AI-related demand.

South African equities ended marginally higher on Tuesday. The FTSE/JSE All Share Index gained 0.10% to 116 828.14 points, while the Top 40 Index rose 0.13%. Financials advanced 1.22%, while Resources declined 0.54% and Metals and Mining fell 0.53%. The rand strengthened 0.43% against the US dollar to R15.95, 0.36% against the British pound to R21.76 and 0.40% against the euro to R18.61. South Africa’s 10-year government bond yield eased to around 8.60%.

Commodity markets were mixed. Brent crude oil declined 3.94% to $88.54 per barrel as signs of easing tensions between the US and Iran supported expectations of reduced disruption to energy supplies. Gold gained 0.17% to $4 659.49 per ounce, while silver declined 0.02% to $68.92 per ounce and platinum fell 1.09% to $1 868.60 per ounce.