US Markets Highlights — Jul 31, 2026 | Aivina
July 31, 2026
US equity markets concluded May with positive momentum, largely driven by continued strength in the technology sector and AI-related stocks. The latest PCE inflation data, which met market expectations, offered some reassurance regarding the disinflationary trend. While Federal Reserve officials maintain a data-dependent stance, market expectations for a September rate cut have seen a modest increase, contributing to a neutral risk sentiment.
Highlights
- S&P 500 closed May higher; NASDAQ Composite showed strength; Technology sector led gains.
- PCE inflation data met expectations; Market reacted with slight volatility; Equity indices recovered quickly.
- NVIDIA stock continued rally; AI optimism boosted tech; Broader market sentiment firm.
Macro Overview
Inflation
Core PCE matched expectations; annual rate 2.8%; headline PCE 2.7%; gradual disinflation continues.
Interest Rate Outlook
Fed officials remain data-dependent; September rate cut odds increased; June cut remains unlikely.
Risk Sentiment
neutral
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