Global Tech Stocks Surge Amid Possible Fed Rate Cut

Global stocks rose as expectations for a December interest rate cut by the Federal Reserve fueled investor interest in technology stocks. Alphabet could become the fourth company to reach a $4 trillion market valuation. The possibility of the Fed cutting rates has buoyed markets, with 81% predicting a rate cut.

In a significant market shift, global stocks experienced a notable rise on Tuesday. The uptick came as Federal Reserve officials reinforced expectations of a possible interest rate cut in December, fueling investor enthusiasm, particularly in the technology sector. Google parent Alphabet is poised to achieve a market capitalization of $4 trillion, reflecting investor confidence in the continued growth spurred by artificial intelligence advancements.

The MSCI All-World index marked its third consecutive day of gains, rebounding from the recent two-month lows. European shares edged up by 0.2%, with U.S. stock index futures hovering around previous levels after Monday's strong showing in benchmark indices. Meanwhile, yields on 10-year Treasury notes dipped, responding to rising bets on interest rate cuts.

Investor sentiment surged as markets priced in an 81% chance of a quarter-point rate cut next month. The U.S. central bank's meeting in early December will serve as a crucial juncture. Despite the monetary shifts, the dollar has remained resilient against most currencies, with notable tension in Japanese markets regarding the yen's weakening status.

(With inputs from agencies.)