Global Stocks Climb As Traders Watch For Fed Moves
What’s going on here?
Global stocks ticked higher after progress in US-China trade talks and growing buzz over artificial intelligence lifted spirits, with Europe’s STOXX 600 up 0.4% and US futures headed for gains too.
What does this mean?
Markets are riding a wave of renewed optimism as the US and China signal improved trade relations, while investments in artificial intelligence keep fueling tech sector momentum. Even so, attention snapped back to the Federal Reserve after officials dashed hopes for a quick series of interest rate cuts, sending the dollar to a three-month high. Chair Jerome Powell emphasized that more rate cuts aren’t guaranteed, which trimmed the odds for another cut this year to 68%. With the jobs report delayed by the US government shutdown, investors are hunting for clues in private-sector numbers. And as major tech and AI names like Advanced Micro Devices, Qualcomm, and Palantir get set to report earnings, all eyes are on how recent spending will pay off.
Why should I care?
For markets: Investors keep one foot on the brake.
Stock markets might be climbing, but caution is sticking around. Bank of America strategists are urging investors to take some profits and shift toward defensive sectors as the year winds down. Volatility is still in the air—gold has surged past $4,000 and Brent crude is approaching $65, reflecting lingering uncertainty. On top of that, weaker US demand and tariffs are putting pressure on Asian manufacturers, which could slow export growth globally.
The bigger picture: Cautious optimism shapes global strategies.
Trade progress and AI breakthroughs are giving markets a boost, but questions around the Fed’s next move and geopolitical risks are keeping risk appetites in check. With labor data up in the air and policy direction unclear, many investors are piling into defensive assets like gold. Meanwhile, tech firms are under extra pressure to show that their bold investments in artificial intelligence will deliver long-term results.
