Markets Push Higher on Rising Fed Cut Hopes

Overall Market Overview

Global markets ended mostly higher as investors reacted positively to signs of easing inflation and weaker US jobs data, fueling expectations that the Federal Reserve could begin cutting interest rates as early as next week. Risk appetite improved modestly across regions, although gains remained cautious ahead of key central bank decisions.

US: Fed Cut Optimism Lifts Wall Street

US stocks closed higher as cooling inflation boosted expectations of an imminent rate cut. The Dow Jones$DJIA(.DJI)$   added 104 points, while the S&P 500$S&P 500(.SPX)$   and Nasdaq$NASDAQ(.IXIC)$   posted steady gains. Investors rotated back into growth and cyclical names amid increasing confidence that monetary tightening is nearing an end.

Europe: Mixed Moves Before Policy Signals

European markets traded mixed as investors stayed cautious ahead of the Fed decision. Germany’s DAX outperformed, while UK and French equities lagged amid profit-taking and local economic uncertainty.

Asia: Rate Cut Hopes Drive Selective Gains

Asian markets mostly advanced on optimism over looser US policy. China and Hong Kong $HSI(HSI)$  posted solid gains, reflecting improving sentiment, while Japan’s Nikkei retreated due to currency pressure and valuation concerns.

Outlook and Insights

Markets are likely to remain volatile in the short term as investors await confirmation of a US rate cut. A dovish shift could support equities, especially growth stocks, while bond yields may decline. However, any policy disappointment could trigger near-term pullbacks.

Conclusion

With inflation easing and growth risks rising, markets are positioning for a monetary pivot. Short-term optimism remains, but sustained rallies will depend on central banks delivering on rate-cut expectations.