Get ready for a quarter-point rate cut from the Federal Reserve next month as the U.S. economy continues to thrive. Recent macroeconomic updates indicate that American consumers are spending, WalMart is optimistic, and jobless claims are decreasing.
While there are lingering weaknesses in manufacturing and housing, inflation is on target, allowing the Fed to ease off in September and support the ongoing expansion. The Atlanta Fed's 'GDPNow' estimate has cooled slightly, but overall economic surprise indexes remain negative.
The Fed is expected to start easing next month, with futures pricing in only 30 basis points of cuts. The upcoming Jackson Hole symposium and Nvidia's earnings will shed light on the central bank's direction and the AI sector.
Wall Street is rallying, with futures pointing to continued gains. Treasuries are holding steady, reflecting a positive correlation between stocks and bonds, while the overseas market sentiment is upbeat.
European stocks are following Wall Street's lead, despite mixed economic data. Chinese stocks are firming up, and the pound is performing well against other currencies.
Upcoming housing starts data and corporate earnings, such as Campbell Soup's report, will provide further direction for U.S. markets. Keep an eye on the latest developments to stay ahead in these dynamic times.