Global Markets Surge as Inflation Cools and Tech Giants Lead Rally
WorldNews Business Desk
London/New York/Tokyo — Global stock markets soared today after key inflation data from the United States and Europe showed a sharper-than-expected cooling in consumer prices, igniting hopes that central banks may begin easing interest rates by mid-year. The rally was further fueled by strong quarterly earnings from tech titans such as NovaSoft, ArgoAI, and NetCom.
Inflation Slows in Major Economies
The U.S. Labor Department reported that annual inflation dropped to 2.3% in April, the lowest since 2021. In the Eurozone, inflation fell to 2.1%, approaching the European Central Bank’s target.
Markets reacted positively, with the Dow Jones Industrial Average climbing 480 points, the FTSE 100 rising 2.1%, and Japan’s Nikkei 225 jumping to a 35-year high.
Christine Doyle, Chief Economist at GlobalTrust, said, “We may be witnessing the beginning of a global pivot away from aggressive rate hikes toward more accommodative policy.”
Tech Giants Drive Market Optimism
Global technology companies led the charge. U.S.-based NovaSoft reported a 17% surge in quarterly profit, driven by its AI cloud services. ArgoAI, a European autonomous logistics firm, saw its shares jump 9% after announcing a major partnership with India’s Shakti Motors.
Meanwhile, China’s TitanCloud announced a strategic expansion into Africa, with $2.5 billion earmarked for AI infrastructure across Nigeria, Kenya, and Egypt — signaling an intensifying competition for global cloud dominance.
Currency & Commodities Market Reacts
The U.S. dollar weakened slightly as investors anticipated future rate cuts, while the euro and yen gained ground. Gold prices rose by 1.5%, reaching $2,065 per ounce, and crude oil rebounded modestly after recent declines, with Brent crude trading at $81.50 per barrel.
Bitcoin and other major cryptocurrencies also rallied, with BTC rising above $67,000, buoyed by investor appetite for risk.
Central Banks Under Pressure
With inflation retreating, pressure is mounting on central banks to adjust their monetary stance. Analysts now predict the Federal Reserve may reduce rates as early as July 2025, while the European Central Bank could follow suit in September.
However, Bank of Japan Governor Hiroshi Tanaka remains cautious. “While inflation appears under control globally, Japan’s wage growth and consumer activity must be stable before any policy shift,” he said.
Outlook: cautious optimism
Global investors remain optimistic but cautious, citing potential geopolitical risks, such as tensions in the Taiwan Strait and uncertainty around the U.S. presidential elections in November.
Still, the day marked a rare alignment of economic hope and corporate strength — a welcome respite after months of recession fears.
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