CITIC Securities: "Rate Cut Trade" On Hold Again, Market Awaits Powell's Speech
BlockBeats News, August 18. In a recent research report, Citic Securities stated that on August 12, a style shift occurred in the U.S. stock market after the release of the July CPI data, reminding the market of the "rate cut trade" that took place on July 11, 2024, following the release of the June 2024 U.S. CPI data. However, on August 14, the U.S. July PPI data significantly exceeded expectations, throwing cold water on the already underway "rate cut trade" and leaving the market in a dilemma. We believe that if Powell adopts a dovish stance and officially announces a rate cut in September at the Jackson Hole Global Central Bank Annual Meeting next Friday, the main theme of the U.S. stock market's "rate cut trade" may be reaffirmed, leading to a replay of the market scenario seen in the July 2024 "rate cut trade," where the rate-sensitive Russell 2000, S&P 500 Real Estate, and Nasdaq Biotechnology sectors experienced gains. (FXStreet)
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