Tech Stocks Fuel Global Rally as US Inflation Data Reduces Rate-Hike Bets

Global markets experienced a boost on August 12 as technology stocks continued their upward trend. The Nasdaq, S&P 500, and MSCI All Country indices approached all-time highs following strong financial results from tech companies.

The July U.S. inflation data met market expectations, reducing the likelihood of a Federal Reserve interest rate hike in September. A weaker U.S. employment report also contributed to the Fed's more cautious stance.

Technology stocks led the gains, with shares of several companies climbing amid investment in artificial intelligence. The S&P 500 and Nasdaq rose 0.3% and 0.6%, respectively, while South Korea's stock market surged by 4%. Japan's Nikkei reached a three-week high.

However, the U.S. budget deficit hit a record $432 billion for July, nearly 50% higher than last year, and added pressure to the debt market. The U.S. Treasury is increasingly raising funds through short-term bills.