Stock markets across North America, Europe, and Asia staged a broad rally on Friday after fresh government data showed inflation cooled more than economists had forecast, stoking optimism that central banks may begin cutting interest rates sooner than previously anticipated.
The benchmark indices in New York, London, and Frankfurt each closed more than two percent higher, their strongest single-day gains in several months.
Investors rotated heavily into growth and technology sectors, which are particularly sensitive to interest rate expectations, while bond yields declined sharply.
Central bank officials cautioned against reading too much into a single month of data, emphasizing that the path back to the two-percent inflation target remains gradual.