CITIC Securities: Powell's dovish remarks will dominate the "catch-up" logic of the US stock market

ChainCatcher news, according to Jinshi reports, Citic Securities research report indicates that Powell's dovish speech at the Jackson Hole annual meeting met expectations, and it is anticipated that the Federal Reserve will consecutively cut interest rates three times this year, each by 25 basis points. The "rate cut trade" logic in the U.S. stock market will be redefined, similar to the market in July 2024, with interest rate-sensitive Russell 2000, S&P 500 real estate, and Nasdaq biotechnology likely to rise again. It is expected that U.S. Treasury yields and the dollar index still have slight downward space, and the expectation of rate cuts will boost global equity market risk appetite, but caution is needed regarding the potential negative impact of a Russia-Ukraine agreement.