Gulf stock markets rally as U.S. inflation dip boosts rate-cut hopes

Most Gulf stock markets advanced after U.S. inflation data came in softer than expected, rekindling hopes that the Federal Reserve may consider rate cuts soon. The release lifted sentiment across oil-linked equities, although Saudi Arabia’s index slipped amid weaker crude prices. With most Gulf currencies pegged to the dollar, expectations of U.S. policy easing often translate into local market gains. Traders remain mindful of possible oil-price headwinds and regional geopolitical tensions that could offset this positive momentum.