Global Stocks Reach Record Highs on US Rate Cut Optimism

U.S. stock markets surged to record highs following July inflation data that suggested easing price pressures, fueling expectations that the Federal Reserve will cut interest rates in September. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all hit new records amid optimism that lower rates would support economic growth and corporate earnings. Inflation rose 2.7% year-over-year, slightly below forecasts, increasing trader bets on a rate cut with a probability exceeding 90%. President Donald Trump has been vocally urging the Fed to lower rates to boost the economy, despite concerns that rate cuts could worsen inflation amid ongoing tariff tensions. Additionally, global indices like the MSCI All Country World Index also reached all-time highs, while volatility measures dropped to lows not seen since December, reflecting strong investor confidence. Major sectors and leading tech stocks, including Intel, Meta, Microsoft, and Apple, showed significant gains, reinforcing a broadly positive market sentiment.