TOKYO – Wednesday, July 3, 2024 – Global stock markets experienced a broad rally on Wednesday, fueled by Federal Reserve Chair Jerome Powell’s comments hinting at potential interest rate cuts. Powell acknowledged the recent improvement in inflation data, raising investors’ hopes for a rate reduction.

Key Market Movements:

• US Markets: The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all saw gains, with the S&P 500 and Nasdaq setting new records.
• European Markets: France’s CAC 40, Germany’s DAX, and Britain’s FTSE 100 all rose.
• Asian Markets: Japan’s Nikkei 225 surged 1.3%, while Hong Kong’s Hang Seng added 1.2%. South Korea’s Kospi edged up 0.5%, and Australia’s S&P/ASX 200 gained nearly 0.3%.

Factors Driving the Rally:

• Powell’s Comments: Investors are optimistic that slowing inflation will lead to interest rate cuts, stimulating the economy.
• Tesla’s Performance: Tesla’s stock jumped 10.2% after reporting better-than-expected sales figures.
• Oil Prices: Crude oil prices continued to rise due to strong summer demand and potential hurricane disruptions.

Market Outlook:

• Investors eagerly await the US jobs report on Friday, which will provide further insight into the state of the economy.
• The Japanese yen weakened against the US dollar, reaching a 38-year low.