Global Stocks Reach Multi-Year Highs on AI Optimism and Fed Rate Cut Bets

Global stock markets, particularly in Asia and the U.S., are reaching multi-year record highs driven by enthusiasm for artificial intelligence (AI) innovation and expectations of Federal Reserve interest rate cuts. China's offshore stock indexes, including the MSCI China Index and Nasdaq Golden Dragon China Index, have surged more than 30-40% year-to-date, benefiting from increased global capital flows favoring Asia as the U.S. dollar weakens. In Taiwan, the Taiex index hit record levels led by chipmaker TSMC, which rallied alongside other semiconductor and hardware suppliers amid growing AI demand. Similarly, South Korea, Singapore, and broader emerging Asia markets have reached multi-year highs supported by strong semiconductor exports and the AI-driven global tech boom. Meanwhile, U.S. indices such as the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average set new records despite a government shutdown, fueled by AI optimism and anticipated rate cuts. Overall, the AI frenzy and favorable monetary policy outlook are boosting investor confidence and driving equity markets worldwide to unprecedented levels.