Analysis: The market will usher in a wave of interest rate cuts in September

While stronger-than-expected U.S. second-quarter GDP data may ease some concerns about the economy, analysts noted that a higher-than-expected 2.9% core personal consumption expenditures price index (PCE) could spell trouble for the Fed. "While this is above target, it is coming down and, combined with strong economic growth data, this takes some pressure off the Fed to cut rates next week," Emma Wall of Hargreaves Lansdown said in a note. "We expect the Fed, ECB and Bank of England to cut rates in September, which will be a wave of rate cuts. For investors focused on U.S. stocks, we think there are opportunities in small-cap stocks that offer better value, despite the recent pullback in the Magnificent Seven."