Global Markets Rally in Overnight Trading Fueled by Fed Hopes and Tariff Truce

Global markets surged overnight into Wednesday, August 13, 2025, as investors digested softer-than-expected U.S. inflation figures, heightened expectations for a Federal Reserve rate cut in September, and a newly announced 90-day pause on additional tariffs for Chinese imports. The wave of optimism carried markets from Tokyo to Frankfurt, with major indices hitting fresh all-time or multi-month highs.
The move was triggered by U.S. CPI data that came in slightly under forecast, reinforcing beliefs that the Fed is primed to ease monetary policy soon. During the overnight session, futures tied to the S&P 500, Dow Jones, and Nasdaq climbed sharply—even before domestic markets opened.
Asia quickly followed suit. Japan’s Nikkei 225 broke above the 43,000 level for the first time ever, while Hong Kong’s Hang Seng jumped nearly 2.6% and South Korea's Kospi gained more than 1%. European equity benchmarks similarly advanced, buoyed by the rising tide of global sentiment. Currency markets shifted in step—investors dumped the U.S. dollar, and gold rallied as demand for safe-haven assets reemerged.
Commodity prices moved unevenly: while gold rose sharply, oil softened amid concerns of oversupply and weaker demand trends. Analysts credited the blend of easing inflation, trade policy relief, and Fed rate-cut expectations as the primary accelerants behind the rally.