According to TechFlow, while stronger-than-expected U.S. second-quarter GDP data may ease some concerns about the economy, analysts pointed out that the higher-than-expected 2.9% core personal consumption expenditure price index (PCE) could cause trouble for the Federal Reserve.

“While this is above target, it is falling and, combined with strong economic growth data, this takes some pressure off the Fed to cut rates next week,” Emma Wall of Hargreaves Lansdown said in a note.

“We expect the Fed, ECB and BoE to cut rates in September, which will be a wave of rate cuts. For investors focused on the U.S. stock market, we think there are opportunities in small-cap stocks that offer better value, despite the recent pullback in the Magnificent Seven.”