Last week, U.S. economic data surprised to the upside, with second-quarter GDP growth revised higher to 3.8% annualized, well above trend rates. Consumer spending remained healthy, and personal income and spending for August both exceeded forecasts, signaling continued household strength. The Atlanta Fed’s GDPNow model now points to third-quarter growth near 3.9%. Inflation, as measured by the Fed’s preferred PCE index, ticked up slightly but remained in line with expectations, with headline PCE at 2.7% and core at 2.9%. Treasury yields rose modestly, driven by strong economic data, while expectations for Fed rate cuts in 2025 edged lower. Equity markets saw volatility, with the S&P 500 hitting a record high before pulling back, partially fueled by profit-taking in tech and AI stocks. Gold continued its rally, setting another record high, and oil surged over 5% for its biggest weekly gain in months. Political uncertainty around a potential U.S. government shutdown and upcoming jobs data remain key risks for markets.