US growth returns – What about inflation? [Video]
![US growth returns – What about inflation? [Video]](https://editorial.fxsstatic.com/images/i/HIGH Traffic - 1330 GMT - US PCE inflation_XtraLarge.png)
Investors shrugged off Nvidia’s latest earnings report despite slower AI growth signals with shares swinging around their all-time highs. Analysts lifted price targets, keeping optimism alive. Broadly, S&P500 companies reported a strong Q2, with earnings growth near 12%, surpassing expectations, while Federal Reserve (Fed) rate-cut expectations support further equity gains.
On the data front, US Q2 GDP came in at 3.3%, real sales rose 6.8% and core inflation remained sticky at 2% keeping markets cautiously optimistic. Trade tensions continue as the US ends the de minimis exemption on low-value goods, potentially adding inflationary pressure. In Europe, August inflation data and possible US-EU car tariff reductions from 27.5% to 15% are in focus, while French political instability affects euro sentiment. Sector-wise, energy stocks climbed on US GDP optimism and dividend-paying names may attract more capital amid looming inflation risks.
Author
Ipek Ozkardeskaya
Swissquote Bank Ltd
Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.
