Global stocks rose modestly, supported by solid corporate earnings and better-than-expected U.S. economic growth. Investor worries about high valuations among artificial intelligence (AI) stocks were offset by stellar quarterly earnings reports from AI-linked companies, including Alphabet, NVIDIA and Microsoft.
Health care stocks posted the largest gains, reversing course from earlier in the year when the sector lagged other areas of the market. Materials stocks also moved significantly higher amid rising prices for gold, silver and other commodities. Real estate stocks fell amid weak home sales in some key markets. Consumer discretionary stocks also declined.
Bonds generally advanced as investors cheered two interest rate cuts by the U.S. Federal Reserve (Fed). Even with inflation moving slightly higher, Fed officials said the cuts were necessary to help support a weakening U.S. labor market. The European Central Bank held rates steady, while the Bank of Japan raised its key policy rate to the highest level in 30 years.