Stock markets worldwide surged on Monday after the Federal Reserve, European Central Bank, and Bank of Japan simultaneously signaled that the era of aggressive interest rate increases is coming to an end.
The S&P 500 jumped 2.3% to close at a record high, while European indices gained between 1.8% and 3.1%. Asian markets followed suit in overnight trading, with the Nikkei 225 climbing 2.7%.
"Investors are breathing a collective sigh of relief," noted Goldman Sachs chief economist Jan Hatzius. "The soft landing that many thought was impossible now looks increasingly likely."
Technology stocks led the rally, with the Nasdaq Composite rising 3.1%. Growth-oriented companies, which were hit hardest by rising borrowing costs, saw the largest gains.