JSE Outlook: Will South Africa’s Share Market Open Lower After US Tech Slump?
A weak US tech session could cast a shadow on tomorrow’s JSE open, but recent resilience hints at buying opportunities.
Quick overview
- A sharp selloff in the US tech sector has negatively impacted global market sentiment, particularly affecting the Nasdaq 100.
- The JSE All Share Index has faced challenges but shows signs of resilience, currently supported around the 10,700-point level.
- Recent tariff developments have added volatility to the markets, with China's retaliatory measures dampening investor mood.
- Despite a potential bearish open tomorrow, the JSE may present buying opportunities for traders looking for long-term gains.
A weak US tech session could cast a shadow on tomorrow’s JSE open, but recent resilience hints at buying opportunities.
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US Tech Stocks Drag Global Sentiment Lower
The week began on shaky ground for global markets, led by a sharp selloff in the US tech sector. Major technology and semiconductor names like Nvidia (NVDA), Amazon (AMZN), and Tesla (TSLA) triggered a wave of risk-off sentiment, sending the Nasdaq 100 plunging 3.5% intraday. The index opened with a bearish gap and continued its downward slide, falling below the 18,000-point mark after failing to clear the psychological 20,000 barrier earlier this month.
This broad-based weakness in US equities, particularly in growth-oriented stocks, is likely to ripple across international markets—including the Johannesburg Stock Exchange (JSE) and the Major companies share price such as Naspers, Anglo American, Vodafone, MTN Group etc.
JSE’s Trajectory: Capped Gains, but Holding Up
The JSE Share Index has struggled to break free from a long-term bearish trend that began in early 2018, when it was trading above 20,000 points. It plunged to lows near 8,000, establishing a firm support base before rebounding strongly in 2024.
The rally resumed into early 2025, pushing the index toward 12,300, where it has since encountered firm resistance. The recent correction brought the JSE back toward 10,700 points, a level supported by the 200-week Simple Moving Average (SMA)—an indicator that had previously acted as resistance but has now turned into solid support.
Tariff Drama Reignites Volatility
After US President Donald Trump temporarily paused tariffs in April, global investor sentiment improved. This policy shift provided breathing room for risk assets, including the JSE. However, the rebound has started to fade. China’s retaliatory tariffs and export restrictions on key industries have since dampened the mood.
US indices like the S&P 500 and Dow Jones also suffered steep losses of over 3%, reinforcing bearish global undertones. This suggests that the JSE could open lower tomorrow, following the negative lead from Wall Street.
Conclusion: Short-Term Dip, Long-Term Opportunity?
Despite the looming bearish open, the JSE has shown resilience in recent weeks. The retreat to support levels around 10,700 points may offer a compelling buy-the-dip opportunity for traders watching for long setups. If broader sentiment stabilizes, the South African stock market may continue its march back toward the 12,300 resistance zone.
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