Global equity markets continued their record-breaking rally on September 11, 2025, driven by cooling inflation data and artificial intelligence enthusiasm, though financial experts caution that stretched valuations pose significant risks for investors.
The MSCI All Country World Index climbed to successive records, while the S&P 500 and Nasdaq Composite reached fresh highs alongside technology leaders. All nine indexes on major world markets watchlists have posted gains through early September 2025, reflecting broad-based global momentum.
Oracle Corporation emerged as a standout performer, surging approximately 30% after announcing aggressive cloud revenue projections reaching $144 billion by fiscal 2030, marking its biggest single-day gain since 1992.
The software giant’s artificial intelligence-focused cloud business projections sent shockwaves through markets, with analysts expressing amazement at revenue forecasts jumping 77% to $18 billion this fiscal year from $10 billion previously.
Japan’s Nikkei 225 and South Korea’s Kospi have also logged unprecedented gains as investors celebrate cooling producer price data and anticipate Federal Reserve interest rate cuts through year-end.
Fresh economic data showed US wholesale prices unexpectedly declined 0.1% in August, far below consensus forecasts, leading traders to price in near-certain quarter-point Federal Reserve cuts at upcoming meetings.
However, financial advisory firm deVere Group warns that markets are “racing ahead of fundamentals,” with CEO Nigel Green cautioning about the combination of weakening labor signals, aggressive rate cut expectations and escalating trade tensions.
“The combination of weakening labor market signals, heavy bets on multiple rate reductions and escalating tariffs under President Trump is a combustible mix,” Green stated. “Investors must not confuse policy hopes with economic reality.”
Despite optimism surrounding artificial intelligence innovation and monetary policy easing, headline consumer inflation remains near 3%, the highest since January, reflecting tariff-driven costs filtering through supply chains.
The S&P 500 Momentum Index has outperformed its parent index by 10% in 2025, driven partly by increasing valuations and fundamental improvements in high-momentum companies.
Technology shares exemplify current market exuberance, with the Nasdaq reaching levels reminiscent of the late-1990s technology boom. Oracle’s surge pushed its market capitalization toward the $1 trillion benchmark, underscoring investor appetite for artificial intelligence leadership.
“This cycle is being driven by innovation and liquidity, but history shows liquidity can reverse quickly,” Green commented, advising investors to diversify across geographies and asset classes rather than concentrating in mega-cap technology stocks.
Global dynamics add complexity to market conditions. European benchmarks are participating in the rally despite tepid growth indicators, while China’s manufacturing rebound remains uneven as fresh US tariffs introduced in August begin impacting Asian exporters.
Currency markets reflect these cross-currents, with the dollar softening on rate-cut expectations while remaining vulnerable to hawkish Federal Reserve shifts or trade dispute escalation that could unsettle risk assets globally.
“The dollar’s trajectory is pivotal,” Green noted. “A sudden strengthening would tighten financial conditions worldwide and squeeze emerging markets that have benefited from easier funding this year.”
Stock futures for major US indexes lifted in premarket trading after the unexpected inflation cooling, boosting hopes for September rate cuts despite persistent price pressures in key sectors.
The deVere Group chief emphasized that extraordinary market highs demand extraordinary discipline, recommending professional guidance for navigating volatile conditions and fast-moving macroeconomic data.
Despite warnings about stretched valuations, Green remains optimistic about opportunities for disciplined investors focused on high-quality companies with strong cash flows, sound balance sheets and global revenue streams.
Market participants continue balancing artificial intelligence innovation potential against traditional valuation metrics, while monetary policy expectations drive allocation decisions across asset classes and geographic regions.
The current rally’s sustainability will depend on earnings delivery matching elevated expectations, particularly in technology sectors where valuations have reached historically elevated levels relative to traditional metrics.
Source: newsghana.com.gh
