Global Markets Rally as Inflation Shows Signs of Cooling

Stock markets worldwide surged today following the release of lower-than-expected inflation data from several major economies.

The S&P 500 index rose by 2.3%, while the Nasdaq Composite gained 3.1%. European markets also saw significant gains, with the STOXX 600 up 1.8% and the FTSE 100 climbing 1.5%.

"This is exactly what investors have been waiting for," said financial analyst Maria Gonzalez. "The data suggests that central banks' tightening policies are finally having the desired effect without tipping economies into recession."

Inflation figures released today showed:

• U.S. consumer price index rose 3.2% year-over-year, below the 3.5% forecast
• Eurozone inflation dropped to 2.4%, approaching the European Central Bank's 2% target
• UK inflation fell to 3.7%, its lowest level in two years

The positive market reaction was particularly strong in technology and consumer discretionary sectors, which tend to be more sensitive to interest rate expectations.

Bond markets also rallied, with yields on 10-year U.S. Treasury notes falling by 15 basis points as investors adjusted their expectations for future rate hikes.

Central bank officials have cautioned against premature celebration, noting that inflation remains above target levels in most major economies.