Global Markets Ride High Amid Federal Reserve Rate Speculation

Global stock markets experienced a second consecutive day of growth on Tuesday, amid increasing speculation about Federal Reserve rate cuts aimed at supporting the U.S. economy. U.S. shares showed robust performance on Monday, buoyed by generally positive earnings reports and rising anticipations of a potential September rate cut by the Fed, following disappointing jobs data from Friday.

Conversely, oil prices experienced a slight downturn due to OPEC+ output increases, while gold remained near a one-week high. Signs of weakness in the U.S. economy have fueled predictions of forthcoming Fed actions, possibly leading to one or two rate cuts this year, according to market strategists like Rodrigo Catril from National Australia Bank.

European markets mirrored gains across Asian exchanges, with STOXX 600 rising 0.4% and MSCI's Asia-Pacific index climbing 0.8%. The markets are debating whether negative economic data will indeed result in positive outcomes, such as renewed Fed easing measures, or exacerbate concerns about growth. In currency markets, the dollar made modest gains after a period of decline, amid economic and geopolitical tensions amplified by President Trump's interventions.