Latest economic data cools recession worries

Recent economic data, including strong retail sales and a decrease in jobless claims, has eased concerns of an impending recession. Retail sales rose 1% in July, surpassing expectations, while initial filings for unemployment insurance fell more than anticipated.

The positive economic indicators have led to a surge in stocks, with the S&P 500 experiencing its best weekly return in nine months. Analysts suggest that the data points to a 'Goldilocks scenario' and a 'soft landing' for the economy.

The rebound in retail sales is attributed to robust spending and broad-based growth. The market sentiment has shifted, with expectations of a 25 basis point interest rate cut by the Federal Reserve.

However, some economists suggest that gradual rate cuts may be more appropriate, highlighting the lack of need for significant economic stimulus. Overall, the latest economic data has provided reassurance and dampened fears of a US economic slowdown.