U.S. equity markets reached fresh all-time highs last week, with both the S&P 500 and Dow Jones Industrial Average setting new records.

The move followed an upward revision to Q2 GDP growth from 3.0% to 3.3%, underscoring stronger economic momentum. Investor optimism was further fueled by robust indicators, but caution persisted. The Trump Administration’s ousting of Fed Governor Lisa Cook drew global scrutiny to central bank independence, while Nvidia’s results revealed weaker data-center demand due to U.S. export constraints, keeping volatility elevated.

Next week, markets will focus on the July personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, scheduled for release on Friday. Core PCE is expected to show a 0.2–0.3% monthly rise and annual inflation near 2.9%, marking a potential third consecutive monthly increase. Early in the week, investors will also review new home sales, durable goods orders, and consumer confidence data, while earnings season continues with reports from several technology companies. These releases set the stage for another volatile stretch.

Given this economic backdrop, let us see how this impacts the performance of various investment strategies.