Global stock markets soared on Thursday following the U.S. Federal Reserve's significant 0.5 percentage point interest rate cut, the first in over four years, aimed at preventing a recession and stabilizing the economy amid cooling inflation. Major U.S. indexes, including the Dow Jones Industrial Average and the S&P 500, reached record highs, while European stocks and key indexes in Asia also saw substantial gains. Analysts believe the Fed's move, labeled a 'recalibration' by Chair Jerome Powell, has bolstered investor confidence in a soft economic landing. Despite the positive reaction in equity markets, the bond market displayed skepticism, with rising yields indicating concerns over potential longer-term inflation. Among individual stocks, companies reliant on economic strength, such as Darden Restaurants and tech giants like Nvidia, saw notable gains. The rally reflects optimism that the Fed's actions will support sustained economic growth without reigniting high inflation.