Wall St follows world stocks higher powered by AI, rate cut hopes

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NEW YORK, June 20 - U.S. stocks followed their European counterparts higher on Thursday and Treasury yields rose as soft economic data and central bank actions abroad set the stage for a dovish pivot from the Federal Reserve.

This, combined with dovish sentiment expressed by the Bank of England and the Swiss National Bank's interest rate cut, seemed to give the Fed some maneuvering room over the timing of its first interest rate cut. Even so, expectations for a rate cut as soon as September have faded a bit. Financial markets are currently pricing in a 57.9% chance of a 25-basis-point rate cut in September, down from 61.1% a week ago, according to CME's FedWatch tool.

The pan-European STOXX 600 index , opens new tab rose 0.71% and MSCI's gauge of stocks across the globe , opens new tab gained 0.14%.

 

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