Global stock prices rose last week as inflation in the U.S. eased, leading to expectations that the U.S. central bank will soon begin to lower interest rates, which should support economic growth.
On Wall Street last week, the Dow Jones strengthened by 1.6 percent to 40,000 points, while the S&P 500 rose by 0.9 percent to 5,615 points, and the Nasdaq index increased by 0.25 percent to 18,398 points.
All three indices reached new record levels during the week. The S&P 500 and Nasdaq set records at the beginning of the week, thanks to the growth of the technology sector, but by the end of the week, these indices lost some gains, while the Dow Jones reached a record level.
Investor focus was on new inflation data in the U.S. In June, consumer prices fell by 0.1 percent month-on-month, while annual inflation slid to 3 percent, the lowest level in over three years.
As a result, speculation strengthened that the U.S. central bank would lower interest rates as early as September.
Consequently, in the second half of the week, stock prices of technology companies fell, causing the S&P 500 and Nasdaq indices to slip from record levels.
On the other hand, stock prices in other sectors, which could benefit more from interest rate cuts, rose.
