Global stock markets rallied on Tuesday as strong quarterly results from major U.S. technology companies boosted investor confidence and helped lift risk appetite across equity markets worldwide.

The surge in tech earnings — notably from several AI and cloud computing leaders — reinforced expectations that corporate profit growth can remain resilient even amid macroeconomic uncertainties.

Investors also cheered clearer monetary policy signals from major central banks that suggested a steady rate path this quarter. The S&P 500 and Nasdaq both climbed, leading gains on Wall Street, while European bourses followed suit in early trading.

In Asia, benchmarks tracked the positive sentiment, although some markets posted more modest gains in response to regional economic data. Markets participants said the combination of earnings strength and policy clarity underpinned the broader rally.

Positive technology sector performance helped counterbalance weaker readings in some cyclical industries, with software and semiconductor firms among the top contributors to market advances.

Traders noted that earnings beats and raised guidance from several top tech names have eased recent concerns about profit sustainability amid rising capital expenditure.

The rotation back into growth sectors underscored investor willingness to reallocate capital toward innovation-led companies. Fixed-income markets reflected this shift with moderate yield fluctuations as demand for safe-havens eased.

Market breadth improved as small- and mid-cap stocks also participated in the rally, though enthusiasm varied by region and sector.

Emerging markets saw selective inflows, particularly into technology and consumer discretionary sectors, while energy and materials stocks lagged.

Analysts said that strong corporate results tend to lift equity sentiment broadly, even if macro risks persist. Currency markets showed a stable tone, with the U.S. dollar holding gains against several major peers.

Despite the positive tide, traders remain alert to upcoming data releases including inflation figures and employment statistics, which could shape monetary policy expectations and market direction in the weeks ahead.

Investors said that clear signals on interest rates from the Federal Reserve and European Central Bank could either reinforce or temper current risk appetite. Macro data out of Asia and Europe will also influence global flows.

In commodities, oil prices edged higher on renewed demand outlooks tied to economic growth cues, while precious metals saw modest profit-taking after recent safe-haven rallies.

Financial analysts said risk-on sentiment is likely to persist if earnings continue to surprise to the upside and policymakers maintain stable forward guidance.

Source: Reuters