02/11/2026
Market Open | Markets Seek Stability After AI Selloff
Wall Street sold off sharply on Friday as concerns mounted that the frenzy around artificial intelligence had pushed valuations too far. Intel collapsed after issuing weak guidance, sparking a global chip rout, while Amazon was punished for heavy AI capital expenditure without matching cash flow. The Philadelphia Semiconductor Index fell more than 7% on the day.
US futures are attempting to stabilise this morning, and most Asian equity markets are trading off their session lows. Chinese benchmarks are higher on reports that the country's regulators will meet financial institutions to discuss measures to support capital markets.
Precious metals had a punishing close on Friday, with gold ending its worst monthly performance since 2008. The metal tumbled despite lower Treasury yields, a move that suggests deleveraging in the precious metals space. Prices are modestly higher at the start of the week. Whether this is a rebound from severely oversold levels or something more sustainable should become clearer as we move through the US elections and Nonfarm Payrolls data this week.
Oil is giving back some of its geopolitical premium. Brent is down around $2 a barrel as Iran and Qatar hold a third day of talks on a plan Tehran says could reopen the Strait of Hormuz within two days if the US meets its conditions. Relief remains tempered, however, as attacks on shipping have continued.
The rand is little changed, with USD/ZAR trading at around R16.72. With US futures pointing higher, Asian markets mostly firmer and gold finding a footing, we expect a firmer open for the JSE All Share Index. Naspers and Prosus are likely to benefit from the rally in Chinese stocks, while gold miners should see some relief.
It is a busy week ahead, with the US midterm elections on Tuesday, local municipal elections on Wednesday and US jobs data on Friday set to be key drivers of sentiment and direction over the coming days.
$JSE
