A snippet from Nomura on the US stockmarket leading into the Federal Reserve's Federal Open Market Committee meeting later this month.

  • recent rhetoric by Fed Chair Powell suggests the "Fed put" is soon to be exercised
  • US macro surprise index has picked up

We even think there is an automatic stabilizer of sorts in place:

  • even if US stocks were to fall off steeply between now and the July FOMC meeting, we would then expect the market to increasingly expect a rate cut of at least 50bp
  • and those expectations would presumably pull the stock market back up

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Yep.