Global Markets Rally as Tech Stocks Lead Wall Street Gains

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Global markets surged on Tuesday, following another day of strong gains on Wall Street driven by the technology sector. European and Asian markets saw significant advances, reflecting growing optimism among investors, according to Associated Press.

In Europe, major indices showed resilience, with Germany’s DAX rising 0.4% to 18,401.00, the CAC 40 in Paris edging 0.2% higher to 8,015.58, and Britain’s FTSE 100 surging 1.1% to 8,300.55.

Futures for the S&P 500 and the Dow Jones Industrial Average were also up by 0.1%, signaling a positive start for U.S. markets.

In Asian trading, Tokyo’s Nikkei 225 jumped 1.6% to 38,835.10, led by semiconductor companies like Tokyo Electron, which closed 4.8% higher, and Advantest, which gained 2.2%. South Korea’s Kospi surged 2.2% to 2,734.36, driven by tech giants Samsung Electronics and SK Hynix.

However, Hong Kong’s Hang Seng retreated 0.5% to 18,779.37, while China’s Shanghai Composite index recovered from early losses to gain 0.2% to 3,147.74. Australia’s S&P/ASX 200 also advanced 1.4% to 7,793.30 following the central bank’s decision to keep interest rates unchanged at 4.35%.

The Reserve Bank of Australia’s cautious stance on interest rates reflects broader global economic uncertainties. According to Abhijit Surya of Capital Economics, the central bank is likely to maintain its current policy stance until further clarity emerges from economic data.

Meanwhile, in the U.S., major indices closed higher on Monday, with the S&P 500 rising 1%, the Dow industrials gaining 0.5%, and the Nasdaq composite jumping 1.2%. Tech stocks, including Nvidia and Super Micro Computer, led the market higher, driven by strong demand for artificial intelligence technology.

Investors remain cautiously optimistic amid concerns about inflation and the Federal Reserve’s monetary policy. However, expectations of a potential interest rate cut by the Fed before the end of the year have increased, reflecting hopes for continued support to the economy and financial markets.

Looking ahead, corporate earnings reports continue to drive market sentiment, with several major companies yet to release their quarterly results. The global earnings outlook remains positive, signaling sustained recovery in corporate profitability across regions.

In commodity markets, benchmark U.S. crude oil added 32 cents to $78.80 per barrel, while Brent crude rose to $83.65 per barrel. The dollar strengthened against the yen but weakened slightly against the euro, reflecting ongoing currency market dynamics amidst global economic uncertainties.