Central Banks Spark Stock Market Rally Amid Global Rate Cuts

Global stocks experienced a positive surge driven by central bank rate cuts, with the US Federal Reserve, Norway, and Canada leading the charge. While US indexes saw gains, European and Japanese markets faced declines. Investors anticipate further stock boosts pending upcoming earnings reports and central bank decisions.

In a volatile week, global stocks enjoyed a surge, fueled particularly by positive sentiment from Wall Street following pivotal central bank rate cuts. Key moves included the US Federal Reserve's decision to decrease interest rates by 0.25%. Norway and Canada followed suit with similar measures.

Consequently, all three US indexes made gains, with new records hit a day earlier. However, European shares, Japan's Nikkei, and MSCI's global gauge faced struggles, despite some optimism. Investors remain hopeful that these central bank decisions will ultimately benefit stocks as focus shifts to October's earnings season.

Amid these financial dynamics, the US dollar index rose for the third consecutive session, though still on course for weekly losses. Investors continue to closely watch evolving trade talks between US and China, awaiting market drivers as global economies adapt to geopolitical and financial shifts.

(With inputs from agencies.)