Recent economic data has provided reassurance that the US economy is still strong, contradicting concerns of a recession. Retail sales in July exceeded expectations, while unemployment insurance filings fell more than anticipated.
The positive data led to a surge in stock prices, with the S&P 500 experiencing its best weekly return in nine months. The rebound in retail sales was attributed to strong spending and broad-based growth.
Market sentiment shifted, with expectations of a 25 basis point interest rate cut by the Federal Reserve. However, economists suggest that gradual rate cuts may be more appropriate, as the economy does not require significant stimulus.
Despite concerns about rising unemployment, consumer sentiment remains optimistic and spending continues to be consistent. Inflation has slowed, allowing the Fed to consider easing in September.
Overall, the latest data indicates that the US expansion is still ongoing and recession risks are low.
infobud.ai is an AI-driven news aggregator that simplifies global news, offering customizable feeds in all languages for tailored insights into tech, finance, politics, and more. It provides precise, relevant news updates, overcoming conventional search tool limitations. Due to the diversity of news sources, it provides precise and relevant news updates, focusing entirely on the facts without influencing opinion. Read moreExpand