Global stocks reached close to a one-month peak on Tuesday, with the dollar dropping to an eight-month low amidst speculation that the U.S. Federal Reserve might offer indications of potential interest rate cuts. Investors are closely watching for hints on the future of U.S. rates from the release of the Fed’s July meeting minutes on Wednesday and Chair Jerome Powell’s speech at Jackson Hole on Friday. Recent comments from Fed policymakers have hinted at possible easing in September, setting the stage for similar language at the global central bankers’ annual meeting in Jackson Hole, Wyoming. Nicholas Colas, Co-founder of DataTrek Research LLC, stated, “Markets anticipate a systematic approach of reducing rates at most meetings over the next year once the Fed initiates cuts.” Despite concerns about this aggressive strategy, Colas noted that eight 25 basis point reductions would still keep Fed Funds above the neutral interest rate estimate. Investors are optimistic that monetary policy easing will provide support for stock markets. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average saw modest declines reflecting market expectations of lower rates. The MSCI index for global stocks remained stable near a one-month high. Expectations of a dovish Fed stance led to the dollar’s struggles, hitting an eight-month low against the euro and remaining weak against other major currencies. The dollar index dropped to its lowest level since January. Gold prices hit a new high supported by the weakening dollar and expectations of impending U.S. rate cuts. In Asia, stock markets saw mixed results, with the Nikkei 225 reaching its highest point in over two weeks, while Chinese blue-chips faced declines amidst concerns over the country’s economic outlook. Oil prices also fell as Brent crude and U.S. crude experienced losses. Investors are now eager to see how the Fed communicates its monetary policy intentions this week, as market dynamics continue to be influenced by global economic factors.