Global stock markets climbed to record highs on Tuesday as investors bet on falling interest rates and renewed optimism over global growth — with Apple reaching a $4 trillion market valuation for the first time.
The FTSE 100 hit an intra-day record of 9,715.22, before easing slightly to trade 0.5% higher at 9,698.4, while all three major U.S. indices — the S&P 500, Nasdaq, and Dow Jones Industrial Average — also opened at all-time highs, rising between 0.3% and 0.7%.
The broad-based rally reflects growing confidence that the U.S. Federal Reserve will cut interest rates when its two-day policy meeting concludes on Wednesday, marking a pivotal moment for markets after nearly two years of tightening monetary policy.
Apple’s shares rose 1% to $269.86, pushing its total market capitalisation just above $4 trillion and cementing its position as the world’s most valuable listed company.
The rally has been fuelled by strong sales of the company’s latest iPhone lineup, combined with investor confidence in its ability to sustain premium margins through its services, wearables and AI-driven ecosystem.
Apple’s surge comes just days before its quarterly earnings report, due Thursday, which investors expect will confirm steady growth in hardware sales and continued expansion in its subscription services division.
“Apple remains the gold standard in consumer technology and profitability,” said Anita Sharma, senior tech analyst at Horizon Partners. “Breaking the $4 trillion mark isn’t just symbolic — it underlines the market’s faith in Apple’s ability to monetise its ecosystem even in a slower global economy.”
Microsoft, Apple’s closest rival by market capitalisation, regained the top spot earlier this week with a $4.06 trillion valuation, buoyed by optimism ahead of its earnings release tomorrow. The company’s investments in AI through OpenAI and its Azure cloud platform continue to drive investor enthusiasm.
The two tech giants have traded places repeatedly this year, reflecting how leadership in the emerging AI and cloud computing race now defines investor sentiment across global markets.
Meanwhile, other major technology names — including Alphabet (Google), Amazon, and Meta Platforms — are also due to report results this week, setting the stage for one of the most consequential earnings seasons for the “Magnificent Seven” tech stocks.
Beyond the technology sector, global equities have been lifted by improving trade relations and expectations of looser monetary policy in the U.S. and Europe.
Recent data suggesting moderating inflation has encouraged investors to rotate back into risk assets, including growth-oriented sectors such as technology, industrials and consumer discretionary stocks.
“The combination of easing inflation, softer bond yields and central bank caution is creating a sweet spot for equities,” said Chris Weston, Head of Research at Pepperstone. “Markets are now pricing in a 25-basis-point rate cut from the Fed — and perhaps two more by year-end.”
In London, the FTSE 100’s climb to 9,715.22 marked a historic high for the index, driven by gains in energy, banking and mining stocks, alongside strong performances from AstraZeneca and HSBC.
Sterling held steady against the dollar at $1.28, helping exporters on the index, while bond yields dipped slightly amid speculation that the Bank of England could follow the Fed’s lead with a rate cut in early 2026.
Analysts said global optimism had filtered through to European markets, with Germany’s DAX and France’s CAC 40 also trading near record levels.
Attention now turns to Federal Reserve Chair Jerome Powell, who will deliver the central bank’s policy statement and outlook on Wednesday. Markets widely expect a first rate cut since 2023, potentially signalling the start of a more accommodative cycle.
U.S. inflation has fallen back toward the 2% target, while growth remains resilient — factors investors see as supportive of equities and risk assets.
However, analysts caution that valuations in tech-heavy indices are “stretched,” with much of the year’s rally resting on continued earnings growth from a narrow band of mega-cap companies.
“We’re at an inflection point,” said David Blanchflower, former Bank of England policymaker. “If central banks can engineer a soft landing, these levels could hold — but any hawkish surprises from the Fed would test market confidence.”
Apple and Microsoft’s record valuations have reignited debate over the concentration of market power among U.S. tech giants. Together, the top five companies — Apple, Microsoft, Alphabet, Amazon and Nvidia — now account for nearly 30% of the S&P 500’s total market value, a level unseen since the dotcom boom.
Still, investors remain undeterred, viewing the dominance of AI-focused technology stocks as a long-term structural trend rather than a speculative bubble.
As Wall Street edges into new territory, one thing is clear: the market’s trillion-dollar titans are once again defining the next phase of the global bull market.
