Global Markets Rally as U.S. Economic Data Eases Recession Fears

Global shares rose on Friday, capping off weekly gains after positive U.S. economic data alleviated concerns of a recession. Wall Street indices, including the Dow Jones, showed strong performance. Softer inflation data and robust retail spending contributed to improved market sentiment, redirecting focus from recession worries.

Global shares surged on Friday, rounding out a week of gains, driven by encouraging U.S. economic data that eased recession fears in the world's largest economy.

On Wall Street, stocks notched their biggest weekly gains of the year. The Dow Jones Industrial Average closed up roughly 0.25%, with a weekly gain of 2.7%. The S&P 500 and Nasdaq Composite also rose 0.2%, recording weekly increases of 3.7% and 5%, respectively. MSCI's global stock index climbed 0.5%, continuing its recovery from last week's market chaos triggered by U.S. recession concerns and currency fluctuations. Europe's STOXX 600 index added 0.3%, reaching a two-week high and achieving its best week since May 6, up 2.4%.

The VIX U.S. stock volatility index dropped to benign levels around 15, contrasting its four-year high of 65 from early last week. A series of positive U.S. data, including moderated inflation and strong retail spending, shifted market narratives away from recession fears. Expectations for a Federal Reserve interest rate cut in September grew, further bolstering market confidence.