Global technology stock rally and AI sector recovery

Global tech stocks rally as AI demand optimism grows

The US initial jobless claims rose for the week ending July 25.

For the week ending July 25, the number of initial jobless claims in the US rose to 197,000. This figure was noted to be below market expectations.

The US personal consumption expenditures (PCE) price index decreased in June.

In June, the personal consumption expenditures (PCE) price index—the key inflation indicator used by the Federal Reserve—decreased by 0.1% on a month-on-month basis. While it saw an annual increase of 3.7%, the core PCE, which excludes food and energy, rose by 0.1% monthly and 3.3% annually during the same period.

The cooling of these figures was linked to slowing economic growth and declining personal spending. These conditions increased market optimism that the Federal Reserve could maintain interest rates for a longer duration, while simultaneously weakening expectations for further rate hikes.

The US economy grew by 1.5% in the second quarter.

The US economy grew by 1.5% during the second quarter, a figure that fell below initial expectations. This period also saw a deceleration in economic growth when compared to the first quarter.

The slowing growth and declining personal spending fueled optimism that the Federal Reserve could maintain interest rates for a longer period. Consequently, expectations for a second rate hike weakened.