Markets extended gains after softer U.S. inflation data fueled expectations of aggressive Federal Reserve easing. Traders are now pricing in four straight quarter-point rate cuts, with the 10-year Treasury yield slipping below 4% for the first time since April. The shift propelled U.S. equities higher, with both the S&P 500 and Nasdaq closing at record highs.
In Asia, Chinese tech shares surged as Alibaba and Baidu advanced on plans to use in-house semiconductors to power AI models, underscoring Beijing’s push for self-reliance in critical technologies.
European stocks also finished in positive territory, led by a 0.8% gain in France’s CAC 40.
On commodities, gold hovered near all-time highs, up 36% year-to-date, as central bank purchases and inflation hedging drove demand. Oil retreated on concerns about U.S. growth and after the International Energy Agency projected a faster supply increase than previously expected. In Singapore, iron ore edged 0.4% higher.
Still, sentiment turned more cautious into the weekend. European markets and U.S. futures softened Friday, with investors awaiting the Fed’s decision next week for the next catalyst.