Global Shares Rise on Hints of US Interest Rate Cuts

World stock markets gained on Friday nearing all-time highs, supported by a weaker dollar and expected U.S. interest rate cuts. The rise follows U.S. Federal Reserve Chair Jerome Powell's endorsement of cutting rates soon to combat job market risks and approach the Fed's inflation target of 2%.

Global stock markets saw gains on Friday, edging close to all-time highs, as the dollar weakened to near one-year lows. This movement comes after U.S. Federal Reserve Chair Jerome Powell affirmed plans to soon cut interest rates due to rising risks in the job market and approaching the Fed's inflation target of 2%.

U.S. market indices responded positively to Powell's speech at the economic symposium in Jackson Hole, Wyoming. The Dow Jones Industrial Average increased by 0.73% reaching 41,011, the S&P 500 rose 0.65% to 5,606, and the Nasdaq Composite climbed 0.9% to 17,778. Notably, Carl Ludwigson from Bel Air Investment Advisors indicated that Powell's statements provided the market with the necessary optimism without instigating fear.

Across Europe and Asia, the Stoxx 600 index increased by 0.5%, Japan's Nikkei rose by 0.4%, and MSCI's all-country world index grew by 1%. U.S. Treasury yields dropped following the remarks, while oil prices rebounded, and gold prices added 1%. Meanwhile, the euro, sterling, and yen strengthened against the dollar.

(With inputs from agencies.)