Global Markets Surge Amid Upcoming U.S. Rate Cuts

Global shares edged close to all-time highs following signals from U.S. Federal Reserve Chair Jerome Powell that interest rate cuts are imminent. Wall Street saw significant gains, while bond markets reacted with lower yields. The dollar weakened, and commodities such as oil and gold saw mixed performances.

Global shares nearly reached record highs on Friday after U.S. Federal Reserve Chair Jerome Powell confirmed forthcoming interest rate cuts during a speech at the Jackson Hole economic symposium. His remarks heightened market expectations for monetary easing as risks to the job market and inflation continue to be monitored.

Market analysts, such as Peter Cardillo of Spartan Capital Securities, foresee a potential 50-basis-point rate cut if labor market conditions deteriorate further. Wall Street responded positively with notable gains in key indexes, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite.

Internationally, European and Japanese markets saw mixed outcomes, influenced by local inflation data and central bank commentary. In the bond market, expectations of rate cuts bolstered U.S. Treasury prices, while the dollar faced declines against major currencies. Commodity markets showed varying trends with oil prices rising modestly but set to finish the week lower, and gold prices moving closer to recent highs.

(With inputs from agencies.)