Market Commentary

US equity markets delivered a mixed performance on Thursday as investors rotated within the technology sector. Major cloud-computing and software-related names came under pressure, while semiconductor companies advanced strongly. The S&P 500 closed down 0.16% and the Nasdaq fell 0.68%. Gains in financials and other cyclicals helped lift the Dow Jones Industrial Average to a fresh record high of 52 500.

Chipmakers led the rally after Micron surged 15% on stronger-than-expected earnings and an upbeat revenue outlook for the quarter to August. Qualcomm gained 10% after significantly raising its forecast for non-handset revenue over the next three years.

By contrast, several large-cap technology stocks slipped. Nvidia, Oracle, Amazon, Alphabet, and Microsoft each declined by more than 2%, extending the rotation away from software and cloud names towards companies with more direct exposure to artificial intelligence (AI) infrastructure. Apple fell 6.50% after announcing price increases for certain iPad and Mac products in response to rising memory-component costs.

Investor sentiment was supported by signs of economic resilience and easing inflation concerns. Revised data showed the US economy expanded at an annualised rate of 2.10% in 1Q26. The latest PCE inflation figures were broadly in line with expectations and falling energy prices helped ease inflationary pressures. Financial stocks also gained after major US banks passed the Federal Reserve’s annual stress tests, clearing the way for higher shareholder distributions, including dividend increases.

European equities rose, recovering momentum after a subdued session the previous day. The Euro STOXX 50 gained 0.80% to 6 263, while the STOXX Europe 600 closed at a record high of 640, also up 0.80%. Technology shares led the advance as renewed optimism around AI boosted sentiment. Strong guidance from Micron restored confidence in the AI theme, lifting European firms with exposure to semiconductors and AI infrastructure. ASML climbed 2.60%, Infineon added 2.30% and Siemens Energy advanced 2.50%.

Financials also contributed as lower energy prices and easing Eurozone sovereign bond yields improved the lending outlook. BNP Paribas and BBVA each rose about 1.50%. Bayer was the day’s standout, surging nearly 20% in its strongest session in over two decades after a favourable US Supreme Court ruling in litigation related to its Roundup weedkiller.

In the UK, the FTSE 100 rose more than 0.50%, broadly tracking gains across continental Europe, supported by improving risk appetite for technology shares, positive corporate news and renewed merger-and-acquisition activity.

Asian equities advanced as upbeat results and guidance from leading semiconductor companies bolstered confidence in the AI sector. Technology-focused markets led gains across the region: MSCI’s broad Asia-Pacific index, excluding Japan, rose 1.60%, Japan’s Nikkei climbed more than 4%, and China’s Shanghai Composite edged 0.30% higher. Hong Kong’s Hang Seng Index bucked the trend and fell by more than 1%.

South African equities finished higher, led by resource-linked sectors. The JSE Metals and Mining Index rose 2.81%, followed by the Resources 10 Index, which gained 2.21%. The JSE All Share Index closed almost 1% higher.

The rand strengthened against major currencies, trading at R16.47 to the US dollar, R21.75 to the pound and R18.74 to the euro.

Commodity prices moved higher: Brent crude rose 1.74% to $75.02 per barrel, gold gained 0.85% and silver climbed 1.48%.