A Sixth Day of Gains for Global Stocks as Tech Rises

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Global equities climbed on Wednesday, fueled by strength in technology stocks and renewed hopes that the Federal Reserve will move to cut interest rates as the U.S. labor market shows signs of strain.

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In Asia, South Korea’s benchmark was on track to finish at a record high, while markets in Japan and Hong Kong also posted solid gains. MSCI’s Asia-Pacific index is now within 2% of its 2021 peak, underscoring the global rally.

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The MSCI All-Country World Index extended its winning streak to a sixth day, notching yet another all-time high. Futures for both U.S. and European stocks pointed higher as well. Oil prices also advanced after reports of an Israeli strike in Qatar reignited concerns about escalating conflict in the Middle East.

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Tech names once again led the charge. Shares of Taiwan Semiconductor Manufacturing Co. and Tencent Holdings Ltd. were among the strongest performers in Asia, taking cues from Oracle Corp.’s surge in extended U.S. trading. Oracle hit a record high after issuing a bold growth outlook for its cloud services division, boosting sentiment across the global tech sector.

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With new signs pointing to a softer U.S. labor market, traders are now bracing for a wave of inflation data that will heavily influence next week’s Fed meeting and the broader trajectory of rate cuts into 2025. Markets currently anticipate two to three cuts this year, with the upcoming producer price index (PPI) and consumer price index (CPI) reports set to play a decisive role.

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“Right now, investors seem convinced that easing will be enough to shield the U.S. economy from slipping into recession, at least based on the level of risk appetite we’re seeing,” said Kyle Rodda, analyst at Capital.com in Melbourne. “But if inflation comes in hotter than expected, the Fed could face a difficult balancing act between protecting jobs and maintaining price stability.”

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South Korea’s Kospi jumped as much as 1.8% Wednesday, driven by heavyweight names like Samsung Electronics Co. and SK Hynix Inc. The index has soared more than 38% this year, powered by enthusiasm around Seoul’s corporate reform measures and the global artificial intelligence boom.

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Meanwhile, China’s latest data revealed consumer prices dipped back into negative territory for the first time in three months, a reminder of the persistent deflationary pressures weighing on the world’s second-largest economy.

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Geopolitical developments also remain in focus. Traders are closely watching discussions of potential coordinated action between the U.S. and the European Union to push Russia toward peace talks on Ukraine. President Donald Trump signaled he is prepared to align with Europe in imposing sweeping tariffs on China and India — two of Russia’s biggest oil buyers. Trump also said he plans to hold trade discussions with Indian Prime Minister Narendra Modi in the weeks ahead.

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Indian equities advanced, with the Nifty 50 index climbing as much as 0.7%. Tech giants Infosys Ltd. and Tata Consultancy Services Ltd. were among the top contributors to the gains.

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Back in the U.S., all eyes are on whether August inflation figures alter expectations for the Fed’s policy meeting next week. “Markets expect U.S. PPI to cool modestly, and if the numbers match forecasts, it could bolster bets on a 50-basis-point cut in September — adding pressure on the dollar,” said Dilin Wu, strategist at Pepperstone Group Ltd.

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“However, last month’s data showed that producer-level price pressures haven’t fully flowed through to consumers, which makes tomorrow’s CPI report even more pivotal.”

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Ahead of those releases, government data revealed U.S. job growth over the past year was weaker than initially thought. A preliminary benchmark revision showed payrolls will likely be cut by 911,000 — about 0.6% — when final figures are released early next year, marking the largest downward adjustment on record.

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On the policy front, a U.S. judge temporarily blocked President Trump’s attempt to remove Federal Reserve Governor Lisa Cook, ensuring she remains in her role as she challenges allegations tied to mortgage fraud. The ruling keeps Cook in place during a critical time for the Fed’s decision-making process.

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In corporate news, Novo Nordisk A/S announced it will eliminate 9,000 jobs worldwide as part of a cost-cutting push aimed at saving 8 billion Danish krone ($1.3 billion) by the end of 2026. Alongside the layoffs, the pharmaceutical giant trimmed its profit outlook for the third time this year.

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