According to Jinshi Data, 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 core personal consumption expenditure price index (PCE) of 2.9% could cause trouble for the Federal Reserve.
Emma Wall of Hargreaves Lansdown said in a note that while the core PCE index is above target, it is falling and, combined with strong economic growth data, this reduces pressure on the Federal Reserve to cut interest rates next week.
Emma Wall expects the Federal Reserve, the European Central Bank and the Bank of England to cut interest rates in September, which will be a wave of rate cuts. She also believes that for investors focusing on the US stock market, small-cap stocks present better value opportunities, despite the recent pullback in the "Magnificent Seven".
