Global stock markets rallied strongly this week, with the S&P 500 and Nasdaq 100 each rising about 1%, while the UK’s FTSE 100 surged nearly 0.7% to an all-time high.
The rally was driven by U.S. inflation data coming in slightly below expectations — annual inflation for September was 3.0%, compared with market forecasts of 3.2%. This softer reading has revived hopes for an interest-rate cut by the Federal Reserve, possibly as early as December.
Investor sentiment improved globally as markets interpreted the data as a sign that the disinflation trend is gaining momentum, allowing central banks more flexibility to support growth. European and Asian indices followed the U.S. higher, with tech and consumer-focused sectors leading gains.
At the same time, bond yields edged lower, and gold prices stabilized after recent volatility, as investors balanced optimism with caution ahead of key corporate earnings. Analysts note that while inflation cooling is positive, economic data remain uneven, suggesting markets could remain sensitive to upcoming employment and GDP figures
