Global equity markets reached fresh record highs as investors embraced softening inflation data and growing expectations of Federal Reserve rate cuts next month. The dollar weakened against major currencies while bond yields declined, reflecting market optimism about monetary policy easing. Recent inflation figures showed continued cooling in price pressures, reinforcing bets that the Fed will implement its first rate reduction since 2020. Technology and consumer discretionary sectors led gains, with renewable energy stocks also posting strong advances. However, traditional defensive sectors including utilities and consumer staples lagged behind the broader rally. The combination of tame inflation and potential monetary stimulus has created a favorable environment for risk assets globally.
Source: Reuters
