Tech Stocks Surge as Markets Pivot on Fed Rate Outlook

Global equity markets responded sharply to the cooling inflation data, which arrived on the heels of consumer price reports that largely met economic forecasts. As investors recalibrated their portfolios, the surge in the tech sector offset downward pressure elsewhere. U.S. Treasury yields continued their descent following the release, reflecting a broader retreat from the aggressive rate-hike bets that dominated previous trading sessions.

Commodity markets presented a conflicting picture, however. While equities thrived on the prospect of a hawkish pivot, oil prices retreated more than 2% during Thursday’s session. The decline in crude was attributed to rising domestic inventories and revised projections indicating softer global demand. Gold also lost momentum, pulling back from a two-month peak as the immediate urgency for safe-haven assets subsided.