Global Rally: Stocks, Gold, & Oil Climb on Fed News: In a notable global rally,
markets rebounded after the Federal Reserve signaled the possibility of an interest rate cut later this year
while confirming that tariff-related inflation could be temporary.
These developments came as U.S. and Asian equities posted solid gains, bond yields declined,
and gold and oil continued their upward trend amid growing concerns about a global economic slowdown.
What’s behind this momentum across assets?
And how will markets react to the Fed’s next moves? Read the full report below.

Content

Asian Stocks Rise

Powell’s Balanced Tone

Currencies and Bonds React

Fed Policy

Wall Street Responds

Markets Eye Global Central Banks

Corporate Developments

Oil and Gold Extend Gains

Balancing Growth and Inflation

Conclusion

Asian Stocks Rise on Wall Street Boost

Asian stocks rallied, driven by Wall Street’s strong performance.
The S&P 500 rose by 1.1%, and the Nasdaq 100 gained 1.3%.
Australian and South Korean markets also posted gains, while U.S. equity futures climbed higher.

In contrast, Chinese equities fell at the start of trading,
dragged down by their U.S.-listed counterparts during Wednesday’s session,
signaling a loss of recent outperformance against U.S. stocks.
Meanwhile, Japanese markets remained closed due to a public holiday, limiting U.S. Treasury activity in Asia.

Powell’s Balanced Tone Calms Markets

As expected, the Federal Reserve held interest rates steady,

but Fed Chair Jerome Powell’s balanced comments reassured markets.
He emphasized that the inflationary impact of Trump’s tariffs could be “temporary” and that recession risks are “not elevated.”

This boosted risk appetite and helped U.S. equities post their strongest Fed-day rally since July,
pushing the S&P 500 back into correction territory after weeks of losses.

Currencies and Bonds React

The Australian dollar fell in forex markets after disappointing
labor data showed a loss of more than 52,000 jobs last month.
Meanwhile, according to Bloomberg’s Dollar Spot Index,
the U.S. dollar erased previous gains. U.S. Treasury futures climbed higher in Asia,
with 2-year yields dropping below 4% and the 10-year yield falling to 4.25%.

Fed Implements “Indirect Easing”

In what some analysts call indirect easing, the Fed announced
Starting in April, it would reduce the monthly cap on the amount of Treasuries
allowed to roll off its balance sheet from $25 billion to $5 billion.

Jamie Cox of Harris Financial stated:
“This move amounts to indirect rate easing and could pave the way
for the Fed to unwind crisis-era policies by summer if inflation data cooperates.”

Wall Street Responds Positively

U.S. indices extended gains, with the S&P 500 up 1.4%, the Nasdaq 100 up 1.6%,
and the Dow Jones rising 1.2%.
Meanwhile, Bloomberg’s Dollar Spot Index climbed 0.3%.

According to several analysts, despite the Fed lowering its 2025 growth forecast and raising inflation estimates,
markets focused on the positive signals related to potential policy easing.

Markets Eye Global Central Banks

On the global front, Chinese banks kept their loan prime rate unchanged
for the fifth month while Taiwan prepared for its next monetary policy decision.
The Bank of England is expected to hold rates steady,
while the Swiss National Bank may cut rates by 25 basis points.

Corporate Developments

Tencent announced plans to ramp up AI infrastructure investment after posting its fastest revenue growth since 2023.
Meanwhile, Samsung in South Korea pledged to strengthen its position in the high-bandwidth memory chip market following shareholder feedback.

Oil and Gold Extend Gains

In commodities, gold surged to new record highs,
driven by expectations of slower growth and higher inflation.
Oil prices continued to rise,
supported by a U.S. government report easing demand concerns.

Balancing Growth and Inflation

Despite the rally, analysts warn that markets still face a delicate balancing act between growth risks and persistent inflation.
Allianz’s Charlie Ripley noted that markets welcomed the Fed’s move
to slow balance sheet tightening but could face pressure if inflation remains sticky.

Florian Ielpo of Lombard Odier added that bonds could be the main beneficiary of the Fed’s current stance.
At the same time, equities might come under pressure if high rates persist for an extended period.

Conclusion

Overall, the Fed showed greater flexibility in adjusting to economic conditions,
which markets interpreted as a dovish tilt favoring risk assets such as equities.
At the same time, safe havens like bonds and gold attracted increased interest amid cautious optimism.

Global Rally: Stocks, Gold & Oil Climb on Fed News

Global Rally: Stocks, Gold &#038; Oil Climb on Fed News

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Global Rally: Stocks, Gold & Oil Climb on Fed News