CMB Macro: US stocks need more positive catalysts to continue rising, with momentum likely to weaken in August

According to ChainCatcher, citing Jinshi Data and a research report from CMB Macro, Trump has nominated Stephen Moore as a Federal Reserve governor and is expected to nominate another governor soon. There appears to be a trend of MAGA-ization within the Fed, paving the way for future rate cuts.

Recently, statements from Fed officials have been noticeably dovish. If the year-on-year CPI for July, to be released next week, meets market expectations, the Fed may hint at a rate cut during the Jackson Hole Global Central Bank Symposium from August 21-23. However, a 25 basis point rate cut at the September FOMC meeting has already been fully priced in by the market.

After Q2 earnings exceeded expectations, the US stock market will need to see more positive catalysts to continue its upward trend, and momentum may weaken in August.