Global stocks get boost from rising chances of Fed rate cut; dollar steady

Global stocks rose on Tuesday after Federal Reserve officials breathed more life into expectations for a December interest rate cut, prompting investors to pile into technology stocks, shrugging off concerns about the sector becoming overheated.

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Google parent Alphabet could hit $4 trillion in market capitalisation later on, which would make it only the fourth company to reach that mark, showing investors believe the Al-fuelled tech boom is set to continue.

MSCI's All-World index rose for a third day, lifting off last week's two-month lows, as shares in Europe edged up 0.28 and US stock index futures hovered either side of unchanged, following Monday's rally in the benchmark indices.

The yield on benchmark IO-year Treasury notes dipped nearly I basis point to 4.038, while two-year yields, which tend to fall in line with traders' expectations of lower Fed fund rates, were steady at 3.498 in Europe, after dropping 2.5 basis points in the previous session.

The prospect of a US interest rate cut is rising after Fed Governor Christopher Waller said on Monday that available data indicated that the US job market remained weak enough to warrant another quarter-point cut. His remarks followed those of New York Fed President John Williams, who suggested late on Friday that a cut in December was a possibility.

Markets are pricing in a roughly 818 chance of a quarter-point cut next month, according to CME's FedWatch Tool, up from 42.48 a week ago. The US central bank meets on December 9 and IO.