Although August overall was a stock market disappointment, the S&P 500 index added a healthy 2.5% last week, the second straight gain and its best showing since June. Investors shrugged off concern about higher interest rates as reports showed everything from wage growth to consumer confidence cooled just enough to boost the Fed’s policy stance, without portending a recession.

US stocks are a better bet than investments in Europe or China, according to Max Kettner, HSBC’s chief multi-asset strategist. Inflation here is cooling even as the economy grows at just over 2%, and excitement around artificial intelligence more than compensates for recession fears. In contrast, higher interest rates threaten to mire Europe in 1970s-style stagflation and real estate issues in China continue to crush consumer spending. For more on China’s economic slowdown, check out our newsletter from Beijing.