Tech leads global sell-off as oil nears multi-year highs

Market Commentary

US equity indices dived further to seven‑month lows on Friday, as Middle East flare‑ups and soaring energy prices deepened the sell‑off. The S&P 500 and Dow Jones each shed over 1.40%, with the Dow now more than 10% below its recent peak. The Nasdaq slid close to 2%, pushing deeper into correction territory. Tech leaders faced heavy selling, reflecting weakening risk appetite. Nvidia fell 1.90%, Microsoft 2%, while Alphabet and Meta plunged more than 4%. Banks and credit‑sensitive plays also weakened: JPMorgan dropped 2.80% and Visa 3.10%. Energy stood out, with Exxon Mobil up nearly 3%.

The jump in crude reinforced the shift in market sentiment. WTI increased over 5% past $99 per barrel and is now about 40% higher since the start of the conflict. In the meantime, Brent crude climbed more than 4% to $112 per barrel, its highest since June 2022, as fresh disruptions in the Strait of Hormuz overshadowed diplomatic efforts. President Donald Trump delayed strikes on Iranian energy sites until 6 April, but Iran’s Revolutionary Guards vowed a tough response to any waterway traffic, having blocked two Chinese ships and watched a Thai‑flagged cargo vessel run aground.

On the safe‑haven side, precious metals also rose. Gold was close to 3% higher, silver up 2.72% and platinum trading up by 1.17%, as investors sought protection from the heightened geopolitical and inflation risk.

Asian markets ended mixed on Friday, with climbing oil prices denting sentiment. Tokyo's Nikkei dropped 0.43%, while Shanghai gained 0.65% and Hong Kong's Hang Seng rose 0.30%.

According to Reuters, China's commerce ministry launched two counter-probes into US practices blocking its goods – stopping short of instant retaliation amid recent US steps. The US-China truce, forged at Presidents Trump and Xi's October summit, remains intact. President Trump plans a mid-May Beijing visit to mend Asia-Pacific ties. The extendable six-month reviews counter US Section 301 moves by probing US barriers to Chinese exports, tech transfers and green energy initiatives.

The downturn cascaded into Europe where stocks closed sharply lower. The Eurozone's STOXX 50 fell 1.10% to 5 508. The STOXX 600 dropped 0.90% to 575. Germany's DAX 40 dived 1.40% to 22 315, the lowest since April 2025, while London's FTSE 100 held steady. President Trump's extension of the Iran truce until 6 April offered little relief. Oil prices remained elevated, stoking inflation. Banks weakened as bond yields rose. BBVA, UniCredit and Deutsche Bank shed 1.30% to 2.50%. Industrials slid further: Siemens down 2.30% and Schneider 3.30%.

South African markets traded in the red as the geopolitical backdrop weighed on equities. At the close, the JSE All Share Index and the Top 40 each fell close to 1%. The Resources sector declined by 0.35%, while Industrials dropped 1.62%. The rand weakened against the major currencies, trading at 17.15 against the US dollar and down 0.12% versus the euro. In contrast, the rand was 0.19% higher against the pound.