According to Jinshi Data, the Federal Reserve announced a 0.5 percentage point interest rate cut and expected further rate cuts before the end of this year, putting more money in consumers' pockets, boosting luxury goods stocks.

Morningstar analyst Jelena Sokolova said low interest rates are good for markets, stocks and real estate, which will affect the wealth and sentiment of luxury consumers.

Shares of luxury giant LVMH rose 3%, while Gucci owner Kering rose 2.1%. Shares of Hermès, Moncler and Cartier owner Richemont rose 4%, 2.2% and 3.6%, respectively. Smaller brands Brunello Cucinelli and Salvatore Ferragamo rose more than 4%.