Investors See U.S. Economy Cooling Gradually, Not Slowing Sharply -- Market Talk

1219 GMT - Investors interpreted the latest economic data as a sign that the U.S. economy is cooling gradually rather than slowing sharply, reinforcing expectations that the Federal Reserve is unlikely to tighten policy further, Columbia Threadneedle Investments' Keith Balmer says. "While geopolitical tensions remain a risk, markets have largely looked through recent headlines, with the key focus being whether disruptions to energy markets lead to a sustained rise in oil prices and renewed inflationary pressures," the portfolio manager says in a note. Overall, Columbia Threadneedle remains "constructive" on risk assets, he says. "Economic growth remains resilient, corporate earnings continue to hold up well and the long-term investment case for equities remains intact, particularly in emerging markets, Asia and the U.S." (emese.bartha@wsj.com)

(END) Dow Jones Newswires

August 19, 2026 08:19 ET (12:19 GMT)