Stocks climbed to a record as an in-line US inflation reading eased price concerns and bolstered bets on a Federal Reserve interest-rate cut in September.
The MSCI All Country World Index rose 0.2% to an all-time high, tracking Wall Street’s surge to fresh peaks, as money markets nearly priced in a full 25 basis point Fed reduction next month.
European equity-index futures gained 0.4%, signaling the rally is set to extend. A gauge of Asian shares advanced 1.1% as the Nikkei-225 hit a record.
The Cboe Volatility Index, referred to as Wall Street’s fear gauge, declined to the lowest level since December. Volatility in the Treasuries market also dropped, with the ICE BofA MOVE Index, a measure of expected fluctuations in yields, hitting its lowest level since January 2022.
Treasuries inched higher pushing 10-year yields down to 4.28%. The dollar steadied after declining Tuesday.
While underlying US inflation accelerated to its fastest pace since the start of the year, a modest rise in goods prices eased concerns that trade-related costs could spill over into broader price pressures.
