Global Markets Soar Amid Inflation-Induced Interest Rate Speculations

Record highs were observed in global equity indices on Thursday as U.S. Treasury yields declined alongside the dollar, following data suggesting a slackening U.S. job market. Investors' focus shifted from inflation concerns, with the Consumer Price Index climbing 0.4% in August, to expectations of a Federal Reserve interest rate reduction.

The latest labor report recorded a spike in unemployment benefit claims, cementing forecasts of an imminent rate cut from the Fed. Analysts foresee additional cuts through the year's end as markets adjust to a potential easing cycle. The Dow Jones, S&P 500, and Nasdaq reflected optimism with new record levels.

Europe's STOXX 600 also surged, buoyed by the European Central Bank's steady rate position. In currency and commodity markets, the dollar's dip further fueled economic anticipations, amidst a backdrop of easing oil prices and rising geopolitical tensions.