Stock Markets Rebound Amid US Economic Growth and Fed Rate Cut Speculation

World stock indexes mostly rose on Thursday, with the S&P 500 gaining after Wednesday's selloff. Treasury yields fell as solid U.S. economic growth data didn't change expectations for a Fed rate cut. The Japanese yen rallied, and Tesla shares increased by 3.5%. Meanwhile, concerns over China's economy led to iron ore prices falling.

World stock indexes mostly rose on Thursday, with the S&P 500 bouncing back after the previous day's megacap-led selloff. Treasury yields declined as a robust U.S. economic growth reading did little to change expectations for an interest rate cut by the Federal Reserve. The Japanese yen strengthened for the fourth consecutive session against the dollar, as investors prepared for a Bank of Japan meeting next week.

The U.S. dollar eased its losses post-GDP data, which showed faster-than-expected economic growth in the second quarter thanks to strong consumer spending and business investment, even as inflation pressures fell. The Federal Reserve's upcoming policy meeting is set for late July, with markets pricing in a likely rate cut by September.

In market moves, the Dow Jones Industrial Average added 329.50 points to close at 40,183.37, while shares of companies like Tesla and International Business Machines saw significant gains, shedding light on investor sentiment following disappointing quarterly reports from Alphabet and Tesla earlier in the week. Meanwhile, concerns over China's economic health dragged down global indices like MSCI's gauge and STOXX 600.