Markets Rally on Easing U.S. Inflation, Key Corporate Moves Drive Stock Surges

Global equities rallied on Tuesday after U.S. inflation figures aligned with forecasts, reinforcing expectations for a potential Federal Reserve rate cut. Investor sentiment was further lifted by strong corporate updates in tech, clean energy, and resources, alongside notable developments in China, India, and OPEC.

Global markets saw a wave of optimism on Tuesday after U.S. consumer price data came in largely as expected, bolstering hopes for a Federal Reserve rate cut later this year. The Consumer Price Index rose 2.7% in July, meeting forecasts and reinforcing traders’ bets on a September cut.

Corporate highlights

• USA Rare Earth shares surged over 20% after the company signed a memorandum of understanding with Enduro to develop neodymium magnets, a critical component in electric vehicles and wind turbines.
• Sea Ltd stock jumped 17% to a 52-week high following strong investor sentiment, while 180 Life Sciences soared 56% after revealing significant Ethereum holdings.
• Meta and Morgan Stanley both hit record highs, climbing 1.46% and 1.91% respectively.
• ProPhase Labs rocketed nearly 38% after securing a patent for an esophageal disease test.

Sector movers

Tech and clean energy stocks led the day’s gains, with Taiwan Semiconductor announcing plans to phase out 6-inch wafer manufacturing, and Zeo Energy completing its acquisition of Heliogen in a clean energy merger.

Global developments

• China Evergrande will be delisted from the Hong Kong exchange on August 25 amid ongoing financial troubles.
• India’s Ministry of Mines introduced legislation for a national minerals exchange, aiming to boost transparency and efficiency in the sector.
• OPEC projected global oil demand will hit 107.7 million barrels per day by Q4 2026.

With inflation easing and corporate news largely upbeat, U.S. indices closed higher: the S&P 500 gained 0.41%, the Dow Jones rose 0.86%, and the Nasdaq added 0.20%.

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