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Global Markets Rally as Central Banks Signal Rate Cuts

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Global financial markets experienced a broad-based rally today as both the Federal Reserve and the European Central Bank signaled potential interest rate cuts in the upcoming quarter. The S&P 500 rose 2.3%, while European indices gained between 1.8% and 3.1%. The coordinated dovish messaging came after months of declining inflation data across major economies, with core CPI in the United States dropping to 2.1%, nearing the Fed's long-standing 2% target. Bond yields fell sharply across the curve, with the 10-year Treasury dropping to 3.45%.

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