Fidelity: Three themes shaping investments in Q3

So far, 2024 has been all about solid fundamentals. The signs suggest that the United States still occupies a leading position, but it seems that Europe and the United Kingdom are also doing well, while China is no longer hindering the development of the world economy as much as a result of continuous stabilization.

However, sticky inflation continues to cool expectations. The labor market reports in June showed greater dynamics than the Fed would like, but due to the sluggish inflation data in May, Fidelity analysts are even more confident that the price increase will not accelerate again. The Fed’s range of potential rate cuts has narrowed significantly since the beginning of the year. Fidelity believes the bar ahead of the rate cut cycle remains high, but recent results on inflation are encouraging.