Global equities surged across major exchanges on Thursday, August 13, 2026. Wall Street saw strong gains as stocks rise as traders reduce rate hike bets following flat U.S. inflation data. Federal Reserve policymakers received encouraging signals from unchanged producer price figures for July.
For context, investors previously feared central bankers would keep pushing interest rates higher to cool lingering inflation. Market participants shifted their expectations sharply after the government published the latest wholesale price data. Traders now price in a 65 percent probability that central officials hold borrowing costs steady next month. That figure stood at just 50 percent a single day earlier.
Wall Street Rallies as Traders Reduce Rate Hike Bets
Technology shares led the upward momentum on Wall Street, driving the S&P 500 to an intraday record high. The S&P 500 rose 47.53 points, or 0.61 percent, to close at 7,796.03. Meanwhile, the Nasdaq Composite climbed 209.79 points, or 0.79 percent, to reach 26,798.27.
The Dow Jones Industrial Average lagged slightly, slipping 3.55 points, or 0.01 percent, to 53,766.72. Big tech infrastructure earnings continue to look strong across the board. Corporate capital expenditure shows no signs of slowing down anytime soon.
Economist Mohit Kumar from Jefferies noted that high cash reserves continue supporting risky market assets. He confirmed the bank maintains an overweight position in the artificial intelligence sector. (Is anyone really surprised that AI spending is still driving market gains?) That wild pool of sidelined capital is keeping buyers active.
European equity markets remained muted as investors awaited upcoming euro zone inflation statistics following earnings. Weaker commodity prices weighed heavily on energy and mining shares across European exchanges. The pan-European STOXX 600 index closed little changed at 659.24 points, retreating from record highs.
MSCI’s broadest index of Asia-Pacific shares outside Japan closed up 0.96 percent. Emerging market stocks rose 0.85 percent to 1,696.17 points during the same session. MSCI’s gauge of stocks across the globe gained 5.33 points, or 0.46 percent, reaching 1,159.86.
Global Energy Drops Even as Traders Reduce Rate Hike Bets
While stock buyers celebrated, crude oil prices headed lower despite ongoing geopolitical friction in the Middle East. Washington and Tehran traded heavy accusations over reopening the strategic Strait of Hormuz. The U.S. claimed Iran failed to meet obligations, while Iran accused Washington of maintaining port blockades.
Despite those tense diplomatic exchanges, energy markets focused heavily on weakening demand fundamentals. Brent crude futures dropped 1.48 percent to settle at 87.66 dollars per barrel. U.S. crude fell 1.67 percent to end the session at 81.88 dollars.
Commercial crude inventories posted their largest weekly gain since January 2023. At the same time, OPEC lowered its world oil demand growth forecast for 2026. High energy costs continue threatening the economic outlook for large importing nations like Japan and European countries. The U.S. remains relatively insulated from oil shocks.
Fixed income yields extended their recent declines following the soft producer price release. Benchmark U.S. 10-year note yields fell 4.73 basis points to 4.645 percent. The 30-year bond yield dropped 3.13 basis points to 5.2157 percent.
However, fiscal pressures continue lurking in the background for bond traders. The U.S. federal budget deficit climbed to 432 billion dollars. Mizuho strategist Evelyne Gomez-Liechti warned investors against chasing rallies in long-term government debt. She pointed to supply issues, fiscal concerns, and jobless claims data.
The U.S. dollar index remained virtually flat at 99.96 points. The euro edged up 0.03 percent against the greenback to 1.1528 dollars. Meanwhile, the Japanese yen weakened 0.05 percent to 159.48 per dollar.
Japan reported its producer price index jumped 7.2 percent in July from a year earlier. That surge reinforced expectations that the Bank of Japan could raise interest rates next month. In precious metals, spot gold declined 0.92 percent to 4,366.64 dollars per ounce.
