By Michelle Ndaga
Global financial markets rose sharply on Tuesday as renewed expectations of a December interest-rate cut by the U.S. Federal Reserve boosted investor confidence.
The rally followed remarks by several Fed officials indicating that slowing inflation and cooling labour-market conditions might justify monetary easing after months of restrictive policy.
On Wall Street, major indices closed higher, with the Nasdaq leading gains as technology stocks surged. Strong performances by artificial intelligence and semiconductor-linked firms including Alphabet and Nvidia provided a major lift.
Investors remain highly sensitive to Federal Reserve signals, and Tuesday’s movements reflected optimism that borrowing costs may begin to decline before year-end.
Asian markets mirrored the positive momentum. Taiwan’s Taiex climbed, China’s Shanghai Composite posted moderate gains, while Japan’s Nikkei traded flat, weighed down by a double-digit plunge in SoftBank shares.
The Japanese investment conglomerate’s slump reflected concerns over its exposure to high-valuation AI ventures.
European markets also ticked upward, supported by Wall Street’s rally and changing interest-rate expectations.
Analysts say upcoming U.S. inflation and employment data will largely determine whether the Fed follows through with the anticipated cut.
Sources:Reuters
