US equities rally sharply as easing inflation fears and lower rate hike expectations boost risk assets across sectors.
The S&P 500 climbed 1.75%, marking its largest gain in two months, driven by declining oil prices and reduced Federal Reserve tightening expectations. Tech and small-cap stocks led the advance, with the NASDAQ up 2.54% and the Russell 2000 rising 3.02%.
The rally followed a shift in market sentiment as stagflation concerns eased, with metals like gold (+3.48%) and silver (+6.23%) also posting strong gains. European equities joined the rebound, with the FTSE 100 and CAC 40 both up 0.48% after four straight sessions of losses.
Futures signaled further upside, with contracts pointing to additional gains ahead of the next trading session.