NEW YORK, New York - World stock markets closed firmly in the green on Tuesday, with investors piling into risk assets across the board as cooling inflation expectations and optimism over artificial intelligence drove a broad-based rally. U.S. benchmarks led the charge, while Asian indexes delivered some of the session's most eye-popping gains—though Hong Kong and Malaysia finished modestly in the red.

On Wall Street, the Dow Jones Industrial Average advanced 385.56 points, or 0.74 percent, to settle at 52,224.82. The blue-chip index traded between an intraday low of 51,890.10 and a high of 52,370.65, with volume reaching 391.906 million shares.

The broader Standard and Poor's 500 climbed 65.92 points, or 0.89 percent, to close at 7,509.20, after touching a session low of 7,467.86 and a peak of 7,515.31. Trading volume on the index totaled 2.724 billion shares. Year-to-date, the benchmark remains well above its 52-week low of 6,212.69, with the current close sitting just 111.70 points below its 52-week high of 7,620.90.

The NASDAQ Composite was the standout performer among U.S. averages, surging 329.13 points, or 1.29 percent, to finish Tuesday at 25,837.21, fueled by strong gains in mega-cap technology and semiconductor names. Volume on the tech-heavy index reached 6.978 billion shares.

UK and European Markets Finish Higher

Across the Atlantic, major European bourses also closed in positive territory, though gains were more measured compared to their U.S. counterparts.

London's FTSE 100 rose 61.15 points, or 0.58 percent, to end the day at 10,585.91, after opening from a previous close of 10,483.14. The index remains comfortably above its 52-week trough of 8,995.10 and within striking distance of its 52-week peak of 10,934.90.

Germany's DAX P added 164.66 points, or 0.66 percent, settling at 25,011.35, recovering from an intraday low of 24,817.34. The index now sits 888.75 points below its 52-week high of 25,900.10.

France's CAC 40 notched a more modest gain of 23.03 points, or 0.28 percent, closing at 8,363.14, after trading between 8,299.87 and 8,375.31.

The pan-European EURO STOXX 50 I rallied 58.23 points, or 0.94 percent, to finish at 6,285.63, while the Euronext 100 Index advanced 18.59 points, or 0.98 percent, closing at 1,920.37. Belgium's BEL 20 also joined the rally, rising 33.56 points, or 0.60 percent, to end at 5,652.33.

Asia: A Tale of Two Markets

Asian markets delivered a mixed but predominantly bullish performance, with several indexes posting massive gains.

Japan's Nikkei 225 soared an astonishing 2,091.07 points, or 3.26 percent, to close at 66,232.19, as exporters benefited from a sharply weaker yen and strong chip-sector demand.

South Korea's KOSPI Composite Index jumped 231.68 points, or 3.56 percent, finishing at 6,747.95, while Taiwan's TWSE Capitalization Weighted Stock Index exploded higher by 1,783.17 points, or 4.20 percent, to end at an eye-watering 44,232.87—the session's largest percentage gain among major benchmarks.

China's SSE Composite Index added 68.09 points, or 1.79 percent, closing at 3,864.37 on volume of 487.748 million shares, while India's S&P BSE SENSEX bucked the regional trend, falling 238.41 points, or 0.31 percent, to 77,470.11, pressured by profit-taking in financials.

Indonesia's IDX COMPOSITE rallied 108.24 points, or 1.74 percent, to 6,340.02, while Singapore's STI Index rose 27.77 points, or 0.51 percent, closing at 5,526.72.

Australia's benchmarks eked out fractional gains: the S&P/ASX 200 rose just 2.00 points, or 0.02 percent, to 8,793.30, while the ALL ORDINARIES added 2.20 points, also 0.02 percent, finishing at 8,976.90.

Losers of the Session

Hong Kong's HANG SENG INDEX was among the few decliners, slipping 10.76 points, or 0.04 percent, to close at 25,132.29, as tech and property stocks weighed on sentiment. The index traded between 24,991.39 and 25,253.65 during the session.

Malaysia's FTSE Bursa Malaysia KLCI also edged lower, dropping 1.92 points, or 0.11 percent, to 1,720.37, while New Zealand's S&P/NZX 50 INDEX GROSS fell 40.00 points, or 0.29 percent, closing at 13,656.03.

North American and Other Markets

Canada's S&P/TSX Composite Index advanced 408.76 points, or 1.17 percent, to close at 35,369.08 on volume of 220.86 million, mirroring the bullish sentiment south of the border.

Elsewhere, Israel's TA-125 rose 47.94 points, or 1.17 percent, finishing at 4,129.39, while Egypt's EGX 30 Price Return Index gained 863.60 points, or 1.63 percent, to 53,989.60 on volume of 360.46 million. South Africa's Top 40 USD Net TRI Index added 32.39 points, or 0.49 percent, settling at 6,578.03.

Outlook

With the Nasdaq leading U.S. gains and Asian tech-heavy indexes posting blockbuster returns, analysts say the risk-on mood could persist through the remainder of the week, though caution remains over stretched valuations and upcoming corporate earnings. Traders will now turn their attention to U.S. GDP and jobless claims data due later in the week for further directional cues.

U.S. Dollar Dominates Trade on Tuesday, Aussie Holds Steady 

The U.S. dollar staged a broad-based rally in Tuesday's foreign exchange trading session, climbing against nearly every major counterpart as war in the Gulf intensified, and investors digested fresh economic data, positioning for upcoming policy decisions. The sole exception to the greenback's advance was the Australian dollar, which managed to cling to flat ground in a day otherwise defined by dollar strength.

By the close of European trading, the euro extended its recent slide, with the single currency falling 0.10 percent to trade at $1.1403. The move kept the EUR-USD pair hovering near multi-month lows, as widening interest rate differentials continue to favor the U.S. currency.

The Japanese yen was the session's biggest loser among the G10 currencies, tumbling 0.42 percent against the dollar to push USD-JPY to 163.19. The pair's climb to its highest level in weeks reflects the persistent yield gap between U.S. Treasuries and Japanese government bonds, despite verbal intervention warnings from Tokyo officials.

Sterling also retreated, with the GBP-USD pair dropping 0.35 percent to settle at 1.3384. Traders cited month-end rebalancing flows and cautious remarks from Bank of England policymakers as headwinds for the pound, though the decline was kept in check by resilient U.K. services sector data released earlier in the day.

North of the U.S. border, the loonie softened as USD-CAD rose 0.26 percent to 1.4107, pressured by lower crude oil prices and mounting concerns over Canadian economic growth. Meanwhile, the Swiss franc gave up 0.35 percent against the dollar, with USD-CHF climbing to 0.8129 as safe-haven demand for the franc waned amid firmer U.S. equity futures.

Aussie Bucks the Trend

In a notable outlier move, the AUD-USD pair inched up a marginal 0.06 percent to 0.7002, effectively trading flat on the day. The Australian dollar found support from better-than-expected Chinese industrial data and expectations that the Reserve Bank of Australia may hold rates steady longer than its peers, providing a buffer against the overwhelming dollar bid.

"The Aussie's resilience is remarkable given the rampant dollar buying we're seeing elsewhere," Maria Chen, FX strategist at Global Markets Advisory said Monday. "With the RBA still talking down the prospect of near-term easing, traders are reluctant to short the currency aggressively, even as the greenback flexes its muscles."

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

Related story:

Monday 20 July 2026 | Dow Jones sheds 307 points as U.S. stock markets falter | Big News Network