Markets Rally Amid Shift in Rate Hike Expectations

Global markets saw an uptick in activity on Thursday as investors reassessed their expectations for U.S. interest rate hikes.

The shift in expectations came after U.S. producer price data remained unchanged in July, reducing the likelihood of a Federal Reserve rate hike next month.

This, in turn, propelled tech stocks to drive the S&P 500 to a new intraday record high.

Traders reduced their expectations for a September rate hike, assigning a 65% chance of rates remaining steady compared to a 50% probability the day prior.