Global markets rally on rate-cut optimism, European equities hit record high

Macro
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Summary · why it matters

US stock indexes ended the week higher driven by bargain hunting in technology stocks, cooling geopolitical tensions, and renewed optimism that a slowing US labor market will keep the Federal Reserve on track for interest rate cuts later this year. The S&P 500 rose 2%, the Nasdaq gained 2.5%, and the Dow added 2.1%. European equities hit a fresh record high, with the STOXX index up 2.6%, as Eurozone business activity stabilized in June and inflation eased, reducing pressure on the European Central Bank. In Asia, Chinese markets gained 0.4% and Japan's Nikkei 225 rose 1.7%, supported by resilient services activity and continued economic support from the People's Bank of China.

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