Global Markets Surge as Fed Chair Signals Imminent Rate Cuts

Global markets witnessed significant gains on Friday, nearing all-time highs, after U.S. Federal Reserve Chair Jerome Powell indicated forthcoming interest rate cuts. Major U.S. indices rose, European and Japanese markets followed, and bond yields dropped. The dollar weakened, while gold and oil prices surged.

Global markets surged on Friday, approaching all-time highs, following a speech by U.S. Federal Reserve Chair Jerome Powell that indicated imminent interest rate cuts. Powell's remarks at the annual Jackson Hole economic symposium confirmed the need for rate cuts to address risks in the job market and achieve inflation targets.

On Wall Street, the Dow Jones Industrial Average and the S&P 500 gained 0.8%, while the Nasdaq Composite rose by 1.09%. European and Japanese equities also saw gains, with Europe's STOXX 600 climbing to its highest in over three weeks. Meanwhile, Japan's Nikkei increased by 0.4%.

Bond yields fell across the board, and the dollar weakened against major currencies. Concurrently, commodity markets saw a boost, with oil prices rebounding and gold nearing its record high. The positive market response is underpinned by expectations for a 25 basis point U.S. rate cut in September and further cuts throughout the year.

(With inputs from agencies.)