Global Markets Surge Amid Lower Inflation and Strong Corporate Results

Global markets surged as U.S. core inflation showed a lower-than-expected increase, boosting hopes for Federal Reserve rate cuts. Oil prices rallied but were restrained by a peace deal in Gaza. Strong results from major financial companies added to market optimism, with U.S. indexes showing significant gains.

In a boost for global markets, a key equities index rallied as U.S. core inflation rose less than anticipated, fueling optimism that the Federal Reserve might ease interest rates further. The positive sentiment sent oil prices soaring, tempered by a recent peace deal in Gaza.

Wednesday's inflation figures followed data showing moderate U.S. producer price increases, leading investors to speculate on potential Federal Reserve rate cuts this year. Financial strategist Phil Blancato remarked on the markets' long-awaited rise in optimism, noting a shift toward a more favorable economic outlook.

Adding to the buoyancy were robust financial results from major players like JPMorgan, BlackRock, and Goldman Sachs. The positive earnings report helped U.S. stock indexes to achieve their largest daily gains since the presidential election, underscoring market confidence.

(With inputs from agencies.)