Global Stock Markets Rise Following Wall Street Gains and Steady Fed Policy
Global stock markets traded higher on Thursday after Wall Street saw moderate gains, buoyed by the U.S. Federal Reserve’s decision to keep interest rates steady. The Fed’s stance, signaling a patient approach to monetary policy, offered relief to investors concerned about economic slowdown and inflation uncertainty.
In the U.S., the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed modestly higher, reflecting cautious optimism after the Federal Reserve maintained its benchmark interest rate. While the central bank acknowledged recent signs of cooling inflation, it reiterated its commitment to data-driven decisions before considering any rate cuts.
Asian and European markets followed suit with broad gains. Japan’s Nikkei 225 jumped over 1%, bolstered by a weaker yen and strong earnings from key exporters. In Hong Kong, the Hang Seng Index also rose, led by tech and property stocks. Meanwhile, European shares opened higher with the Stoxx 600 and Germany’s DAX seeing positive momentum, driven by upbeat corporate earnings and improved investor sentiment.
The Federal Reserve’s decision to hold rates between 5.25% and 5.5%—a level unchanged since July 2023—came as no surprise to analysts. However, Fed Chair Jerome Powell’s remarks that the central bank needs “greater confidence” in inflation’s path toward 2% underscored the cautious tone.
Global investors welcomed the Fed’s tempered outlook, interpreting it as a sign that aggressive tightening is off the table for now. Still, market participants remain watchful of upcoming economic data, especially U.S. employment and inflation figures, for clues on the timing of potential rate adjustments.
Oil prices also edged higher amid expectations of rising demand and ongoing geopolitical tensions, adding to market optimism. The U.S. dollar weakened slightly, while gold prices firmed as traders priced in a longer hold on rates.
Looking ahead, investors will be closely monitoring corporate earnings, upcoming central bank meetings, and macroeconomic indicators to gauge the sustainability of the market rally.
Source : Swifteradio.com
