Fed Signals Easing Cycle as US Growth Sectors Lead Rally

The Federal Reserve's policy meeting on July 29 marked the conclusion of the week. The central bank decided to keep the federal funds rate at its current restrictive level, though the accompanying statement noted significant progress toward the two percent inflation objective.

This shift in rhetoric, combined with a cooling PCE price index released on July 31, reinforced the market's expectation that the tightening cycle has concluded and shifted the focus toward the timing of the first liquidity easing.

The U.S. equity markets demonstrated resilience over the weekly period ending August 2, with major indices finishing in positive territory.