Tech Rally Propels Global Stock Surge Amid U.S. Uncertainty
Global stocks experienced strong weekly gains driven by tech share rallies and anticipated U.S. rate cuts, while the U.S. government shutdown's impact was mitigated. Euro zone PMIs bolstered the euro, and gold prices continued their ascent amid global market uncertainties.
Global stock markets are experiencing a remarkable weekly surge, attributed to strong performances in tech shares and the expectation of reduced U.S. interest rates. This upward trend continues despite concerns surrounding the U.S. government shutdown, which marks the 15th occurrence since 1981.
While the shutdown has caused some disruptions, mainly the absence of monthly U.S. payroll data, investors have maintained confidence. Euro zone services sector PMIs have improved, helping boost the euro, despite ongoing political uncertainties in France.
Financial markets are nearly certain of a 25 basis point rate cut by the Federal Reserve this month, with additional cuts anticipated by 2026. As investors turn to alternative data sources to gauge U.S. economic health, room for concern remains, but optimism in the stock market persists.
(With inputs from agencies.)
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