SPX: supported by consumer spending
The Fed's favorite inflation gauge, the PCE index, was standing behind the increased investors optimism during the previous week. The Index reached the level of 2.5% in July, which was lower from market expectation of 2.6%. The US equities reacted positively, in expectation of the first Fed's rate cut. The S&P 500 gained more than 1%, ending the week at the level of 5.648. The index ended August with a gain of 2.3%.
Additional support to the surging index came from good results which companies posted for the Q2. There are still only seven companies included in the S&P 500 which are pending results posts. The major companies in the tech industry continue to drive the index to the higher grounds. Market favorite stock, Nvidia, posted increased earnings by 13% for the second quarter. Almost all industries included in the index posted high results for Q2, except materials and real estate industries, which ended the quarter in a correction.
The optimism on financial markets is expected to continue, taking into account posted consumer spending data. With the increase in consumer spending, investors are now expecting that the Q3 data will also be positive, and are adjusting accordingly. Also, analysts are currently making corrections of GDP projections for this year. Atlanta's Federal Reserve GDP now also made a correction of GDP growth expectations to 2.5% from 2.0% expected previously.
Additional support to the surging index came from good results which companies posted for the Q2. There are still only seven companies included in the S&P 500 which are pending results posts. The major companies in the tech industry continue to drive the index to the higher grounds. Market favorite stock, Nvidia, posted increased earnings by 13% for the second quarter. Almost all industries included in the index posted high results for Q2, except materials and real estate industries, which ended the quarter in a correction.
The optimism on financial markets is expected to continue, taking into account posted consumer spending data. With the increase in consumer spending, investors are now expecting that the Q3 data will also be positive, and are adjusting accordingly. Also, analysts are currently making corrections of GDP projections for this year. Atlanta's Federal Reserve GDP now also made a correction of GDP growth expectations to 2.5% from 2.0% expected previously.
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