According to Odaily, the Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures (PCE) index, will not be released until the end of the month. However, barring any unforeseen macroeconomic changes, it is almost certain that the Federal Reserve will significantly reduce borrowing costs at its September meeting. Despite this, predicting the policymakers' next steps remains challenging, indicating potential for increased volatility in the future. The CME FedWatch Tool shows that the market has not yet decided whether the Federal Reserve will cut rates by 25 or 50 basis points next month, with traders slightly favoring a more cautious rate cut.

If the Federal Reserve takes more aggressive measures, it could enhance the appeal of the retail and consumer sectors. Conversely, if officials opt for a more cautious rate cut, investors might see it as an opportune moment to buy into the seven major U.S. tech giants. With initial jobless claims and retail sales data set to be released soon, the situation is expected to continue evolving. The Federal Reserve may also use next week's Jackson Hole meeting to signal the direction of interest rates.