Recent economic data has alleviated recession fears and increased the likelihood of an interest rate cut by the Federal Reserve in September. Retail sales rose by 1% in July, exceeding expectations, while initial jobless claims fell to 227,000, indicating a resilient job market. Inflation has also cooled, with the Consumer Price Index (CPI) rising only 2.9% year-over-year, marking the lowest level since March 2021. Producer Price Index (PPI) inflation also decreased to 2.2% in July, further supporting a potential rate cut. These positive economic indicators have boosted investor confidence, leading to a stock market rally.