After years of grappling with soaring living costs, Americans are finally seeing some relief as U.S. inflation dropped by 0.1% in June, surpassing expectations. Consumer prices rose just 2.97% annually, marking the smallest increase in over three years. Analysts are now confident that the Federal Reserve has finally tamed inflation, with interest rate cuts expected in September. The recent dip in inflation is mainly attributed to a 3.8% decrease in gasoline prices and slowing shelter price increases. Economists believe that the Fed now has the opportunity to cut rates, as shelter inflation aligns more closely with current prices. The probability of a September rate cut is now at 98%, leading to a market shift towards value-focused offerings. Big tech and growth stocks have felt the impact, with an investor rotation underway. Ultimately, after a prolonged rally in anticipation of rate cuts, the market is facing a period of adjustment as reality sets in.