Array
Hong Kong, China — A surge in tech firms Thursday helped Asian markets track a Wall Street rally after data showed US inflation at a more than three-year low, reinforcing expectations the Federal Reserve will cut interest rates next week.
The much-anticipated consumer price index allowed investors to breathe a sigh of relief after a tough couple of weeks that have been filled with worries about the world’s top economy, as a weak run of jobs figures stoked recession fears.
While a report on wholesale prices is due later in the day, the main focus is now on next week’s Fed policy decision and its post-meeting statement on the outlook for rates.
Bets are now surging on a 25-basis-point reduction, with talk of a 50-point shift muted by figures showing that core inflation had seen an unexpected uptick.
US traders welcomed the data and pushed all three main indexes higher, with the Nasdaq up more than two percent and the S&P 500 more than one percent.
The rally was fuelled by a big jump in the tech sector, with chip titan Nvidia rocketing more than eight percent, advanced Micro Devices almost five percent higher and Microsoft piling on 2.
