Global Stocks Surge as Fed Rate Cut Anticipation Grows

Global stocks experienced an upswing after the Federal Reserve hinted at a possible December rate cut, encouraging investors to focus on technology stocks despite concerns about overheating. This optimism helped Alphabet approach a $4-trillion valuation. U.S. and European markets rallied, while the dollar showed strength against other currencies.

Global stocks advanced on Tuesday following signals from the Federal Reserve about a potential interest rate cut in December. This bolstered technology stocks as investors grew optimistic, unfazed by fears of sector overheating. Alphabet, Google's parent company, neared the $4-trillion valuation mark, affirming confidence in an AI-driven tech surge.

MSCI's All-World index increased for a third consecutive day, recovering from last week's lows, with European shares rising slightly and U.S. stock index futures reaching near positive territory. Meanwhile, the benchmark 10-year Treasury yield held steady at 4.036%, as anticipation for a rate cut kept the two-year yield stable at 3.49% in Europe.

In currency markets, the dollar showed resilience against major currencies, notably fortifying against the Japanese yen, despite concerns over Japan's market intervention. This financial environment occurred amid geopolitical tensions between Japan and China, which are transitioning towards potentially improved U.S.-China diplomatic ties.

(With inputs from agencies.)