Global stocks continued to climb on Friday, building on their weekly gains following promising economic data from the U.S. that eased concerns of a recession in the world’s largest economy. Wall Street saw significant gains with the Dow Jones Industrial Average increasing by about 0.25%, resulting in a weekly gain of 2.7%. The S&P 500 and Nasdaq Composite also rose by 0.2%, with weekly gains of around 3.7% and 5%, respectively. MSCI’s main global stock index increased by 0.5%, recovering from the market turmoil of the previous week brought on by recession fears and currency fluctuations. The pan-European STOXX 600 index rose by 0.3%, maintaining its two-week high and registering its best week since May 6 with a 2.4% gain. The VIX U.S. stock volatility index, known as the market’s fear gauge, settled at around 15 after hitting a four-year high of 65 the week before. The positive shift in market sentiment followed a series of U.S. data releases showing a moderation in inflation and strong retail spending. This has shifted the market focus away from recession concerns, which were initially sparked by a weak U.S. jobs report in early August, to a more optimistic outlook on the economy’s growth prospects. The expectation of an interest rate cut by the U.S. Federal Reserve in September has been reinforced by softer inflation data. A survey revealed that U.S. consumer sentiment improved in August, supported by developments in the U.S. presidential race, while inflation expectations remained stable for the next year. Analysts like Scott Wren from Wells Fargo Investment Institute believe that the economy, though slowing, is unlikely to enter a recession, leading to a positive outlook for stocks and bonds. The upcoming meeting of central bankers in Jackson Hole, Wyoming, has fueled expectations of a Fed rate cut next month, albeit possibly smaller than previously anticipated. Japanese stocks rebounded with the Nikkei share average growing by 3.6% on Friday, marking its best week in over four years. On the other hand, the dollar weakened against the yen and other major currencies after disappointing U.S. housing data. Oil prices dipped by nearly 2%, with Brent crude falling below $80 per barrel, while gold prices surged by more than 2%.