Global Markets Surge as Soft U.S. Inflation Data Sparks Rate Cut Hopes

MSCI's global equities gauge rose following softer U.S. inflation data, boosting hopes for Federal Reserve rate cuts. Micron's strong results sparked renewed confidence in AI stocks. The dollar fluctuated, and Wall Street indices saw gains. Meanwhile, oil prices rose amid potential sanctions, and gold edged down despite lower inflation expectations.

Global markets experienced a lift on Thursday as MSCI's global equities gauge rose in response to softer-than-expected U.S. inflation data. The report has invigorated investor hopes for further Federal Reserve rate cuts, easing worries around AI stock valuation after Micron's robust earnings.

Despite the U.S. Consumer Price Index's moderate rise at 2.7% year-on-year versus the anticipated 3.1%, Wall Street rebounded as confidence in tech shares rebounded. The Dow, S&P 500, and Nasdaq all recorded gains, reflecting renewed market optimism.

In currency and bond markets, reactions were mixed as global central banks weighed in. As the dollar index experienced minor fluctuations, bond yields dipped slightly. Meanwhile, oil prices climbed amid geopolitical tensions, while gold saw marginal declines.

(With inputs from agencies.)