Following a turbulent start to the month, global financial markets have swiftly rebounded, driven by stronger-than-expected July retail sales and cooling consumer inflation data. Today’s economic news is adding to the good mood on Wall Street, with traders cheering a positive GDP revision and resilient jobs data. These encouraging indicators have eased earlier concerns of an economic slowdown, and sparked renewed optimism for a potential “soft landing.”
History shows that stocks tend to thrive when rate cuts coincide with solid economic growth rather than a downturn. And after Fed Chair Jerome Powell's dovish tone at Jackson Hole last week, interest rate cuts seem all but guaranteed next month.
