Global Stocks Surge on Policy Shift Anticipation
London: 6 May 2024 (TraderMade): Global stock markets have experienced a significant boost this week, fueled by growing expectations that the Federal Reserve might cut interest rates later this year. This potential policy shift has injected optimism into the markets, leading to a rally across major indices.
In the US, Standard & Poor’s 500 (SPX500) surged 2.85%, Nasdaq (NAS100) surged 3.97%, and Dow Jones (USA30) surged 2.57% over the last 3-4 days.
US Markets Leap on Dovish Sentiment
US equities saw a strong surge on Friday, concluding a volatile week on a positive note. This upward trend was largely driven by a weaker-than-expected jobs report, which led investors to price in a second potential rate cut by the Fed before the end of 2024.
In Europe, FTSE (UK100) soared 1.7%, CAC (FRA40) soared 1.35%, and DAX (GER30) soared 1.82% over the last 3-4 days.
Europe Follows Suit: Energy Boost and Rate Cut Hopes
European markets also witnessed a positive week, with energy stocks leading the charge. This positive sentiment was further amplified by the growing anticipation of potential Fed rate cuts, which could ease borrowing costs and stimulate economic activity.
The pan-European STOXX 600 index closed the week up 0.8%, while major indices in France, Germany, and the UK also registered gains.
