Analysis: The market will usher in a wave of interest rate cuts in September

Odaily News While stronger-than-expected U.S. second-quarter GDP data may ease some concerns about the economy, analysts noted that a higher-than-expected 2.9% core personal consumption expenditures price index (PCE) could spell trouble for the Fed. "While this is above target, it is coming down, and combined with strong economic growth data, this reduces pressure on the Fed to cut rates next week," said Emma Wall of Hargreaves Lansdown in a note. "We expect the Fed, ECB and Bank of England to cut rates in September, which will be a wave of rate cuts. For investors focusing on U.S. stocks, we think there are opportunities for small-cap stocks with better value, despite the recent pullback in the Magnificent Seven."