The increased likelihood of a U.S. rate cut in September, along with rising AI demand, has boosted market confidence. Stock markets in the U.S., Japan, Taiwan, and India have hit new highs, with institutional investors optimistic about the future. U.S. Treasury yields remain stable, while investment-grade corporate bonds have seen slight gains.

Nomura Asset Management reports that U.S. economic data shows signs of a slowdown. The June ISM Manufacturing Index dropped to 48.5, and the ISM Non-Manufacturing Index fell to 48.8. Nonfarm payrolls increased by 206,000, but slower wage growth and higher unemployment indicate a cooling job market. This, coupled with easing inflation, raises the probability of a September rate cut by the Federal Reserve, pushing U.S. stocks to record levels.

Japan's stock market also reached new highs last week. The Bank of Japan’s confidence index for large manufacturers rose to 13, surpassing expectations. Japanese companies increased wages by 5.1%, the largest rise in 33 years, boosting investor confidence in Japanese equities.

In India, the SENSEX 30 index hit a record 80,000 points. After a brief correction following the elections, optimism regarding the continuation of Prime Minister Modi's policies has attracted foreign investment.