Fed’s rate cut hint sparks cautious optimism in global markets
Financial markets saw cautious optimism on Monday, May 18, as Fed Governor Christopher Waller hinted at a possible US stock market rate cut. The suggestion eased investor concerns, lifting stocks and commodities while shifting sentiment across key sectors. The DAX avoided sharper losses, closing at 23,239 points on Xetra—a 0.6% gain from the previous session. Traders attributed the rebound to renewed hopes of a US stock market rate cut, with bond markets pricing in a 70% chance of a third reduction this year. Wall Street’s relief rally further supported the German index. The day’s trading highlighted shifting investor priorities. Stock market rate cut expectations stabilised equities, while Bayer’s clinical success drove sector-specific gains. Markets now await further signals from the Fed and geopolitical developments.
