Global Markets React to Rate Cut Speculations Amid Rising Inflation

Global financial markets saw significant changes on Thursday as MSCI's global equities index reached new highs and U.S. Treasury yields declined. Market sentiment shifted towards expectation of interest rate cuts from the Federal Reserve, fueled by weak labor market data overshadowing higher-than-anticipated inflation figures.

Increased jobless claims have led to predictions of imminent rate cuts by the Federal Reserve, with traders forecasting a 100% probability of a rate reduction at the upcoming Fed meeting. On Wall Street, major indexes closed at record highs, with both the Dow Jones Industrial Average and the Nasdaq Composite making remarkable gains.

The currency and commodity markets reacted to the shifting economic landscape as the dollar weakened and oil prices dropped amidst concerns over U.S. demand and global oversupply. Meanwhile, geopolitical tensions continued to influence market speculations, keeping investors wary of ongoing global developments.

(With inputs from agencies.)