Global equities hit record highs as U.S. Treasury yields and dollar fall on rate cut expectations due to softer labor market data. August CPI rose by 0.4%, driven by housing and food costs, while jobless claims surged to highest level since October 2021. Fed expected to cut rates next week.

Traders betting on 100% probability of rate cut next week, with potential for further cuts in October and December. Market reacts to labor market weakness, expecting Fed easing. Wall Street indexes close at record highs. MSCI global stocks gauge also hits record high for second day in a row.

European stock index rises after ECB keeps rates steady, trims inflation forecasts. U.S. 10-year Treasury yields hit five-month lows below 4% after inflation and jobless claims data. Dollar weakens against major currencies on rate cut prospects.

Oil prices fall over $1 on U.S. demand softening and global oversupply concerns, despite conflicts in the Middle East and Ukraine. U.S. crude settles down 2.04% at $62.37 a barrel, while Brent ends at $66.37 per barrel. Gold prices dip slightly after hitting record highs earlier in the week.

Read more at Yahoo Finance: Stocks rise, dollar falls as soft US jobs data fuels rate cut bets