NEWS  /  Brief News

Global Markets Rally on Thursday Amid Intensifying Speculation of Federal Reserve Rate Cut

Sep 10, 2025, 10:48 p.m. ET

On Thursday, September 11, 2025, global stock markets surged to record highs as investors reacted to growing speculation that the U.S. Federal Reserve will cut interest rates soon, fueled by recent declines in wholesale prices and expectations of softer inflation data.

Global financial markets rallied strongly on Thursday, September 11, 2025, with major stock indices hitting record highs as speculation intensified that the U.S. Federal Reserve will soon reduce interest rates. This market movement was observed worldwide, reflecting investor optimism about potential monetary easing.

The surge in markets was driven by fresh economic data showing an unexpected drop in wholesale prices in August, which added momentum to expectations that inflationary pressures are easing. This development has increased the likelihood that the Federal Reserve will announce a rate cut in its upcoming policy meeting next week.

Investors and analysts have been closely monitoring inflation indicators, including the Consumer Price Index (CPI) and Producer Price Index (PPI), to gauge the Federal Reserve's next steps. According to News Ghana, the decline in wholesale prices has provided new ammunition for those betting on a rate cut, which would mark a shift from the Fed's previous tightening stance.

Market participants in the United States and globally have responded positively to these signals. The speculation has also influenced the cryptocurrency market, where Bitcoin and other digital assets experienced rallies, as reported by CoinCentral on the same day.

JPMorgan strategists have noted that if the upcoming CPI data softens as expected, markets may price in a 50 basis point cut by the Federal Reserve. This anticipation has contributed to the bullish sentiment across various asset classes.

The Federal Reserve is scheduled to announce its interest rate decision next week, and all eyes remain on the inflation data released this week, which will be a critical factor in the central bank's policy direction.

These developments took place amid ongoing global economic uncertainties, but the current market response underscores the significant impact of inflation trends and central bank policies on investor behavior worldwide.

Please sign in and then enter your comment