Global Stock Market Rallies on Fed Rate Cut Hopes, Tech Stocks Lead Charge
U.S. equities extended their rebound as traders priced in an 80% probability of a December Fed rate cut, sparking broad market optimism. The Dow Jones Industrial Average surged 650 points, while the S&P 500 and Nasdaq Composite erased early losses to close higher. Tech giants Alphabet and Apple reached record highs, though Nvidia stumbled amid reports of Meta potentially shifting AI chip purchases.
European markets followed Wall Street's lead, with the Stoxx 600 gaining 0.9% as the rate-cut narrative gained global traction. The rally reflects growing confidence that cheaper borrowing costs could stimulate both tech and traditional sectors, though AI industry leadership remains in flux.