Global Stocks Rebound As Month-End Flows And Rate-Cut Hopes Lift Sentiment

Global equities ended the week on a stronger footing as month-end portfolio rebalancing and renewed expectations of Federal Reserve rate cuts supported a broad risk-on move.

Major U.S. indices posted solid gains, with tech and consumer discretionary leading the rebound after several sessions of volatility. Bond yields eased slightly, helping rate-sensitive sectors stabilize.

In Europe and Asia, benchmark indices also advanced, supported by improving liquidity conditions and optimism that softer U.S. data could push the Fed closer to an early-2026 policy pivot.

FX markets reflected the shift in tone: the dollar edged lower against most majors, while commodity currencies found modest support. Gold hovered near recent highs as investors balanced improving sentiment with ongoing political and fiscal uncertainty tied to the U.S. shutdown.

For traders, the key takeaway is that month-end flows and dovish policy expectations have temporarily revived market appetite — but sustainability now hinges on upcoming U.S. inflation releases and the next wave of central-bank communication.