Wall Street Surges as Dow Hits 40,000 Points

Stock markets around the world witnessed fluctuations on Thursday following a surge driven by a decrease in US inflation. Wall Street, in particular, continued its upward momentum, with the Dow Jones Industrial Average surpassing the 40,000-point milestone during mid-session for the first time.

The positive momentum was fueled by a promising inflation report that hinted at potential interest rate cuts by the Federal Reserve. The Dow, S&P 500, and Nasdaq all extended their gains from the previous day, rising by 0.3 percent, supported by strong earnings from retail giant Walmart that exceeded expectations.

Investment analyst Dan Coatsworth highlighted the remarkable performance of the stock markets this year, attributing investor optimism to the recent inflation data suggesting a possible rate cut by the Federal Reserve in the near future.

Global Market Highlights

While London saw a significant surge in telecoms group BT shares by 17 percent, markets in Paris and Frankfurt closed in the negative territory after setting their own records the day before on speculations of rate cuts in the eurozone and the UK.

Asian equities also experienced gains on Thursday, buoyed by reports of cooling inflation in the US. This led to speculations of potential interest rate cuts by the Federal Reserve, with US inflation for April standing at 3.4 percent annually, slightly lower than the previous month.

Concerns and Outlook

Despite the positive market sentiment, concerns linger as US inflation continues to exceed the Federal Reserve's target of two percent. The Fed is now expected to lower interest rates twice by the end of the year, a shift from the previous forecast of one rate cut.

Oil prices rebounded after a recent decline, with the Hang Seng Index in Hong Kong rising by 1.6 percent and West Texas Intermediate crude oil prices increasing by 0.6 percent to $79.06 per barrel.

Conclusion

The global stock markets are navigating through a period of volatility and optimism, driven by changing inflation dynamics and expectations of central bank interventions. Investors are closely monitoring economic indicators and corporate earnings to gauge the future trajectory of markets amidst uncertainties.