US Stocks Soar Amid Easing Inflation, Record Bond Yields

Global markets received a boost from chip stocks in Asia-Pacific, which lifted South Korea's KOSPI to levels not seen since late July and Japan's Nikkei to highs not seen since earlier this month. However, Hong Kong's Hang Seng Index slipped nearly 1%, while mainland China's CSI 300 Index edged lower.

US stocks continued their winning streak, pushing the Dow Jones Industrial Average to a fresh all-time high of 7,816 after breaking out above a bullish pennant between 7,793 and 7,698. The sector performance was led by communication services, followed closely by real estate, consumer staples, and technology.

The July US inflation report showed easing inflation pressures, with the year-over-year headline cooling to 4.7% from 5.5% in June, and the core cooling from 4.7% to 4.2%. However, Cleveland Fed President Beth Hammack reiterated calls for immediate policy tightening to bring inflation back to target.

The US Treasury auctioned 30-year bonds at the highest rate since 2001, with yields as high as 5.22%, second only to the 5.52% paid in August of that year. The move was seen as a warning shot about the growing US deficit.