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 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 NVDA much-hyped quarterly earnings — the most anticipated event of the week— failing to impress investors with heightened expectations.

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