{"id":51490,"date":"2025-08-04T22:08:48","date_gmt":"2025-08-05T02:08:48","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/global-markets-rally-amid-fed-rate-cut-hopes-and-positive-economic-data\/51490\/"},"modified":"2025-08-04T22:08:48","modified_gmt":"2025-08-05T02:08:48","slug":"global-markets-rally-amid-fed-rate-cut-hopes-and-positive-economic-data","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-amid-fed-rate-cut-hopes-and-positive-economic-data\/51490\/","title":{"rendered":"Global Markets Rally Amid Fed Rate Cut Hopes and Positive Economic Data"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US stock markets surged, with the <a href=\"https:\/\/stockmarketwatch.com\/markets\/dowjones\/today.aspx\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average reclaiming 600 points, driven by renewed expectations of Federal Reserve rate cuts as early as September.<\/strong><\/li>\n<li><strong>Odds for a September Fed rate cut have surged to 90-95% following a weaker-than-expected July jobs report, with Goldman Sachs predicting three consecutive 25-basis-point cuts starting next month.<\/strong><\/li>\n<li><strong>China&#39;s services sector expanded at its fastest pace in over a year in July, with the S&amp;P Global PMI Services rising to 52.6, signaling a boost from domestic demand.<\/strong><\/li>\n<li><strong>The U.S. Dollar declined on growing rate cut expectations and persistent tariff risks, while Asian markets, including Seoul, traded higher.<\/strong><\/li>\n<li><strong>Major corporate developments include a significant $875 million &quot;forever chemicals&quot; settlement by DuPont, Chemours, and Corteva in New Jersey, and Foxconn&#39;s sale of its Lordstown EV factory while maintaining operations.<\/strong><\/li>\n<\/ul>\n<p>US stock markets experienced a robust rally, with the <strong>Dow Jones Industrial Average<\/strong> surging approximately <strong>600 points<\/strong>, effectively recovering losses from the previous week. This rebound was largely fueled by increasing market confidence in imminent Federal Reserve interest rate cuts.<\/p>\n<p>Expectations for a September rate cut by the Federal Reserve have intensified, with probabilities now estimated at <strong>90-95%<\/strong>. This shift comes after a surprisingly weak July jobs report, which showed nonfarm payrolls rising by only <strong>73,000<\/strong>, well below forecasts, and the unemployment rate ticking up to <strong>4.2%<\/strong>. Goldman Sachs (<a href=\"\/stock\/GS\">GS<\/a>) analysts are now forecasting three consecutive 25-basis-point Fed cuts beginning in September, with a potential for a larger 50-basis-point cut if the next jobs report indicates a further jump in the jobless rate. The U.S. Dollar (<a href=\"\/currency\/USD\">USD<\/a>) consequently dropped on these growing rate cut expectations and ongoing tariff risks.<\/p>\n<p>In Asia, markets traded higher, with Seoul shares opening sharply up. The Philippine Central Bank reiterated its commitment to sustained economic growth and employment while prioritizing growth over external risks and safeguarding price stability.<\/p>\n<p>China&#39;s economy showed a positive signal as its services sector expanded at the <em>fastest pace in over a year<\/em> in July. The S&amp;P Global China PMI Services Index rose to <strong>52.6<\/strong>, exceeding expectations of 50.4 and the previous month&#39;s 50.6. This expansion was primarily driven by a boost in domestic demand. However, the Composite PMI for China saw a slight decrease to <strong>50.8<\/strong> from 51.3.<\/p>\n<p>On the corporate front, chemical giants <strong>DuPont<\/strong> (<a href=\"\/stock\/DD\">DD<\/a>), <strong>Chemours<\/strong> (<a href=\"\/stock\/CC\">CC<\/a>), and <strong>Corteva<\/strong> (<a href=\"\/stock\/CTVA\">CTVA<\/a>) agreed to pay New Jersey <strong>$875 million<\/strong> in a historic settlement related to &quot;forever chemicals&quot; pollution. Separately, <strong>Foxconn<\/strong> sold its former General Motors factory in Lordstown, Ohio, to an &quot;existing business partner&quot; Crescent Dune LLC for <strong>$88 million<\/strong> for the land and buildings, with an additional <strong>$287 million<\/strong> for EV production machinery and equipment, totaling <strong>$375 million<\/strong>. Foxconn stated it would continue to operate within the facility, signaling a strategic pivot while maintaining its U.S. manufacturing presence.<\/p>\n<p>South Korean companies also made headlines. <strong>Samsung Display<\/strong> unveiled its new foldable screen brand, <em>MNT Flex<\/em>. <strong>SK Telecom<\/strong> (<a href=\"\/stock\/SKM\">SKM<\/a>) launched its GPU cluster &quot;Haein&quot; as a cloud-based GPU service, powered by over 1,000 NVIDIA Blackwell 200 (B200) GPUs, aiming to expand nationwide AI infrastructure. <strong>Korean Air<\/strong> announced plans to introduce new premium class seats on its retrofitted <strong>Boeing 777-300ER<\/strong> fleet, investing approximately <strong>300 billion won<\/strong> to offer a new class between Prestige and Economy. Additionally, <strong>Samsung&#39;s Galaxy S25<\/strong> reportedly hit <strong>3 million<\/strong> in domestic sales.<\/p>\n<p>In trade and political news, former President <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> vowed to significantly raise tariffs on India, while the U.S. and China have opened new tariff talks, potentially paving the way for a <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a>-Xi summit. Japanese Prime Minister Ishiba is set to release a detailed overview of the U.S.-Japan trade deal, which he described as a &quot;win-win&quot; but acknowledged implementation challenges, particularly concerning unresolved auto tariffs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US stock markets surged, with the Dow Jones Industrial Average reclaiming 600 points, driven by renewed expectations of 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