US inflation cooled in August to its lowest point in over two years, but core inflation, which excludes volatile food and energy prices, remained persistent. This suggests that the Federal Reserve might take a more cautious approach to interest rate cuts in September, despite initial expectations for a larger reduction.
The S&P 500 saw a noticeable shift in market reactions to Q2 2024 earnings reports. Positive EPS surprises were rewarded more than ever, while negative surprises were met with harsher consequences. This suggests that investors are increasingly focused on profitability in the face of potential revenue growth deceleration and may begin to scrutinize top-line performance more closely moving forward.
Revised US employment data from April 2023 to March 2024 revealed a slower pace of job growth than initially reported. This downward revision has fueled expectations of aggressive Fed rate cuts, impacting the dollar and other markets.
