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CITIC Macro: The US stock market needs to see more Favourable Information to continue rising, and the momentum in August may weaken.
On August 11, Jin10 data reported that a macro research report from China Merchants stated that on August 7, Trump nominated Stephen Moore to serve on The Federal Reserve Board of Governors and will nominate another governor soon. There seems to be a trend of MAGA-ization within the Fed, opening the path for future interest rate cuts. Recently, Fed officials have expressed noticeably dovish views. If the July CPI meets market expectations next week, the Fed is likely to provide hints of an interest rate cut at the Jackson Hole global central bank meeting from August 21-23. However, the market has fully priced in a 25 BP rate cut for the September FOMC. After Q2 performance exceeded expectations, the U.S. stock market needs to see more favourable information to continue rising, and momentum may weaken in August.