August ended with a strong rebound in Wall Street’s major indices, reversing the early month market selloff as robust economic data dispelled recession fears.

The U.S. economy roared at an annualized growth rate of 3% in the second quarter, surpassing earlier estimates of 2.8% and more than doubling the pace recorded in the first quarter. This marked the eighth consecutive quarter of expansion, bolstered by a substantial upward revision in consumer spending.

A stronger-than-expected acceleration in personal spending and income in July underscored the health of household finances.

The Federal Reserve’s preferred inflation gauge plateaued after three straight months of decline, yet it fell short of the anticipated uptick, paving the way for a September interest rate cut.

The Dow Jones Industrial Average, as tracked SPDR Dow Jones Industrial Average ETF (NYSE:DIA), notched fresh all-time highs. The S&P 500 index, meanwhile, inched closer to its previous July peak.

The positive market momentum persisted despite Nvidia Corp‘s (NASDAQ:NVDA) much-hyped quarterly earnings — the most anticipated event of the week— failing to impress investors with heightened expectations.

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Berkshire’s $1-Trillion Milestone

Warren Buffett celebrated his 94th birthday the same week his company Berkshire Hathaway Inc. (NYSE:BRK) hit a $1 trillion market cap. The achievement underscores Buffett’s legendary investment acumen, solidifying his legacy as one of the most successful investors of all time.

EV Sales Slow

J.D. Power projects U.S. electric vehicle sales in 2024 to reach only 9% of the market, down from the previously estimated 12%. The firm attributes the slowdown to increased competition from gasoline-powered vehicles and delays in new EV models from major Detroit automakers like Ford Motor Co. (NYSE:F) and General Motors (NYSE:GM).

Real Estate Inflows

Investors have poured $2.2 billion into five real estate ETFs, anticipating potential Federal Reserve rate cuts. This influx highlights growing investor confidence in the sector as lower rates are expected to boost housing demand and provide attractive returns in the evolving economic landscape.

Homebuyers Pressure Builders

Homebuyers are exerting pressure on builders, as mortgage rates are projected to decline. With falling rates in sight, buyers are negotiating harder. They expect better deals on new homes as the market adjusts to the anticipated shift in borrowing costs.

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