Analysis: The market will usher in a wave of interest rate cuts in September

While stronger-than-expected U.S. second-quarter GDP data may ease some concerns about the economy, analysts noted that a higher-than-expected 2.9 percent in the core personal consumption expenditures price index (PCE) could spell trouble for the Federal Reserve. "While this is above target, it is falling, which, combined with strong economic growth data, eases pressure on the Federal Reserve to cut rates next week," Hargreaves Lansdown's Emma Wall said in a note. "We expect the Federal Reserve, the European Central Bank, and the Bank of England to cut rates in September, which will be a wave of rate cuts. For investors watching U.S. equities, we see opportunities in small-cap stocks with better value, despite the recent pullback in the Rosewood Seven."