Global Stocks Rebound as Inflation Data Boosts Confidence in Rate Cuts

Global stocks rose for the first time in four sessions, driven by favorable U.S. inflation data which prompted lower Treasury yields and boosted investor confidence in potential rate cuts by the Federal Reserve. Despite some weekly declines, both U.S. and European markets showed signs of stabilization.

Global stocks climbed for the first time in four sessions on Friday, driven by favorable U.S. inflation data that lowered Treasury yields and bolstered confidence in potential Federal Reserve rate cuts by September.

The Commerce Department's data revealed a slight rise of 0.1% in the PCE price index in June, aligning with economists' predictions. The index rose by 2.5% over the past year, also matching expectations. As a result, market analysts predict that the Fed may cut rates in its next September meeting.

Wall Street saw strong gains, with major indexes like the Dow Jones Industrial Average and the Nasdaq Composite recovering after recent declines. European shares also ended higher despite some weekly losses. Treasury yields fell, and the dollar weakened against other major currencies, including the yen and the euro.