Global Markets Climb Amid Economic Data Surge and Anticipated Fed Rate Cuts

Global stocks rose for the fourth consecutive month despite early August volatility, bolstered by strong U.S. economic data and anticipation of Federal Reserve rate cuts. Key indexes, including the Dow, S&P 500, and Nasdaq, showed significant gains. Meanwhile, bond yields and currency markets saw mixed movements influenced by inflation and interest rate expectations.

Global stocks ended higher on Friday, marking a fourth consecutive month of gains despite an early August sell-off. The rise was driven by strong U.S. economic data that helped the dollar recover from a losing streak. The U.S. personal consumption expenditures (PCE) price index increased by 0.2% in July, according to the Commerce Department. Consumer spending, which constitutes over two-thirds of U.S. economic activity, also rose by 0.5% last month.

This data points towards the Federal Reserve potentially easing monetary policy starting in September. The Dow Jones Industrial Average gained 0.55% to close at 41,563.08, reaching another record high. The S&P 500 rose by 1.01% to 5,648.40, while the Nasdaq Composite increased by 1.13% to 17,713.62. For the month, these indexes showed gains of 1.8%, 2.3%, and 0.6% respectively.

In Europe, the Stoxx index closed up 0.09% after hitting a record intraday high, and Britain's FTSE 100 eased by 0.04%. On the global front, MSCI's world share index rose by 0.77%, making for a 2.40% monthly gain. The U.S. economy grew faster than initially estimated in the second quarter, supported by strong consumer spending. Government bonds rallied, and mixed movements were observed in oil and gold prices throughout the month.

(With inputs from agencies.)