Market Resurgence: Inflation Data Sparks Investor Optimism

Global equities gained as lower-than-expected U.S. inflation data fueled hopes of Federal Reserve rate cuts, while Micron Technology's robust results lifted Wall Street's sentiment on AI stocks. The news prompted rallies in major indices, with inflation analysis indicating potential stock price rebounds amidst strategic adjustments by central banks worldwide.

Global equities experienced a boost on Thursday following four days of declines, attributed to softer-than-expected U.S. inflation data that spurred investor hope for further Federal Reserve rate cuts. Treasury yields fell, while Micron Technology's impressive quarterly results injected renewed confidence into the artificial intelligence sector on Wall Street.

The U.S. Consumer Price Index saw a smaller increase than anticipated, rising 2.7% year-on-year against predictions of 3.1%. This news caused volatile trading in the dollar as investors also responded to updates from European and UK policymakers, leading the Dow Jones Industrial Average to climb by 65.88 points, or 0.14%.

In financial markets, the dollar index showed minor movement against key currencies, while oil prices edged upwards as traders evaluated U.S. sanctions against Russia. Meanwhile, gold prices dipped slightly, weakened by softer inflation numbers, losing some appeal as an inflation hedge.

(With inputs from agencies.)