Global Stocks Surge as Inflation Data Favors Federal Reserve

Global stocks experienced a notable rise, marking their best daily performance in six weeks. U.S. inflation data revealed a steady economic landscape, prompting a potential interest rate cut by the Federal Reserve in September. U.S. Treasury yields and dollar values fell, while European shares also saw gains.

Global stocks rose impressively on Friday, marking their strongest daily performance in six weeks, as equities found footing after a sharp selloff. Data from the U.S. Commerce Department indicated a stable inflation environment, which contributed to the drop in Treasury yields.

The personal consumption expenditures (PCE) price index edged up by 0.1% in June, aligning with economists' expectations. This data provides a favorable backdrop for the Federal Reserve to consider a rate cut in September, despite slim chances of it happening in their upcoming July meeting.

Major U.S. stock indices rallied, with small caps and megacaps showing resilience. The Dow Jones surged 667.65 points, while the S&P 500 and Nasdaq rose significantly. European markets also rebounded, though they ended the week lower overall. Meanwhile, U.S. crude prices dropped due to decreased Chinese demand and optimistic Gaza truce prospects.

(With inputs from agencies.)