Global Stocks Rise on US Inflation Easing, Fed Rate-Cut Hopes

Global stock markets rallied notably after U.S. data showed a slight easing in inflation, which boosted expectations that the Federal Reserve may cut interest rates soon. The recent market optimism has been fueled by a 90-day extension of the truce in President Donald Trump's trade war with China, reducing uncertainty for companies reliant on supply chains involving China. Major indices such as the S&P 500, Dow Jones Industrial Average, and Nasdaq hit record highs, while European and Asian markets, including Germany's DAX, Japan's Nikkei 225, and Hong Kong's Hang Seng, also advanced. Despite some regional variations, markets broadly responded positively to the inflation data and hopes of rate cuts, with sectors like healthcare, consumer discretionary, and financials leading gains. The easing of tariffs and confirmation of a flat 15% U.S. import duty on certain exports further supported Asian exporters, especially in Japan. Investors are pricing in nearly a 100% chance of a Federal Reserve rate cut in September, reflecting improved sentiment amid ongoing trade and economic challenges.