Global stocks rose on Friday, heading for a weekly gain as Wall Street optimism lifted sentiment after key central bank moves. The Federal Reserve cut U.S. interest rates by 0.25%, its first reduction since December. Norway and Canada also lowered rates, fueling investor hopes of looser monetary policy worldwide.
In the U.S., all three major indexes set record highs for a second straight session. The Dow Jones gained 0.37% to 46,315.27, the S&P 500 advanced 0.49% to 6,664.36, and the Nasdaq rose 0.72% to 22,631.48. However, European markets dipped 0.16%, while Japan’s Nikkei fell 0.57% after the Bank of Japan announced plans to sell risky assets. Still, MSCI’s global index hit a record 982.29, up nearly 1% for the week.
Analysts said the Fed’s cautious stance left investors balancing optimism with disappointment. While rate cuts support stocks, the Fed emphasized a data-dependent approach, tempering expectations for an aggressive easing cycle. Treasury yields rose slightly, with the 10-year at 4.129% and the 2-year at 3.574%.
Geopolitical developments also shaped sentiment. U.S. President Donald Trump and China’s Xi Jinping held their first call in months, making progress on a TikTok deal and scheduling a meeting in South Korea. Meanwhile, a U.S. Senate vote failed to advance a spending bill, raising the risk of a government shutdown on October 1.
The dollar strengthened for a third straight day, rising 0.33% to 97.67, with gains against the Swiss franc but losses versus the yen. The euro slipped to $1.1745, and the pound dropped to $1.3467 after the Bank of England slowed bond sales.
Commodities were mixed: Brent crude fell 1.1% to $66.68, WTI slid 1.4% to $62.68, while gold gained 1.04% to $3,681.79, marking its fifth straight weekly rise.


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