European Stocks Surge as Fed Rate Cut Boosts Market Sentiment

European stocks rose sharply as the U.S. Federal Reserve cut interest rates by 50 basis points, hoping for a soft landing for the American economy. The STOXX 600 index reached its highest in over two weeks, with German stocks hitting an all-time high. Technology and mining sectors saw significant gains.

European stocks surged on Thursday following the U.S. Federal Reserve's decisive 50-basis-point rate cut, which raised optimistic expectations for a soft landing in the American economy.

The continent-wide STOXX 600 index gained 1.4%, marking its highest close in more than two weeks. Germany's blue-chip benchmark spiked by 1.6%, reaching an all-time high of 19,002.38 points.

Sectors sensitive to growth, particularly technology, leaped by 3.5% alongside Wall Street's tech giants, and miners added 3%, driven by rising base metal prices. Meanwhile, utilities and telecoms lagged, each falling over 1%.

(With inputs from agencies.)