Global Markets Rally at Start of Year

Global markets began the year with a broad-based rally as investors priced in easing inflation, stable growth, and a lower probability of aggressive monetary tightening. Equity gains were supported by declining volatility and improved risk sentiment across credit and commodities. From a financial perspective, early-year rallies often shape capital allocation for months ahead, influencing fund inflows and asset rotation. In the bigger picture, this momentum reflects a market narrative shifting from crisis management to cautious optimism, signaling confidence that economies can absorb higher rates without triggering recession.