The U.S. Federal Reserve’s decision to maintain its policy of lowering interest rates three times this year has sparked a rally in stock markets not only in the U.S. but around the world.
On the 21st, the Dow Jones rose by 0.68%, S&P 500 by 0.32%, and Nasdaq by 0.20% on the New York Stock Exchange. Consequently, all three indices hit record highs.
European stock markets also rose across the board. Germany’s DAX rose by 0.91%, the UK’s FTSE by 1.88%, and France’s CAC 40 by 0.22%. The Pan-European STOXX Europe 600 index also rose by 0.90%.
Asian stock markets, excluding China, also rallied. Japan’s Nikkei rose by 2.03%, South Korea’s KOSPI by 2.41%, Hong Kong’s Hang Seng by 1.93%, and Australia’s ASX by 1.12%. Notably, the Nikkei hit another record high.
Only China’s Shanghai Composite Index fell by 0.08%. The Chinese stock market has been unable to escape a downturn due to recent stagnation in the real estate market. In particular, since the U.S. initiated decoupling from China, the Chinese stock market has been diverging from global markets.
The rally in Asian and European stock markets was triggered by the rise in U.S. stock markets.
After Chairman Jerome Powell maintained his position on lowering interest rates three times this year through the dot plot after the March FOMC, the U.S. stock markets rallied. The Dow Jones rose by 1.03%, S&P 500 by 0.89%, and Nasdaq by 1.25%.