US Stock Markets Surge Amid Positive Inflation Data
The US stock market is hitting new highs as optimistic inflation data sparks speculation of upcoming Federal Reserve rate cuts. While hopes of lower interest rates raise investment potential, concerns persist over tariffs possibly exacerbating inflation. Global markets show mixed reactions, reflecting economic uncertainties.
The US stock market showed promising gains on Tuesday following favorable inflation reports, suggesting better figures than economists had projected. The S&P 500 climbed 0.6 per cent, nearing an all-time high, while the Dow Jones surged by 251 points, or 0.6 per cent, and the Nasdaq was up 0.7 per cent.
The positive inflation data has reignited hopes that the Federal Reserve could lower interest rates in its upcoming September meeting, potentially making borrowing cheaper for US households and businesses. Such a move has been fiercely advocated by President Trump, although the Fed remains wary due to potential inflationary pressures from ongoing tariffs.
Globally, stock indexes reflected a cautious optimism, with notable increases in Japan's Nikkei and declines in South Korea's Kospi. Meanwhile, the bond market observed slight movements in Treasury yields, reflecting investor sentiment on future economic directions and potential Fed actions.
(With inputs from agencies.)
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