Federal Reserve & Monetary Policy - The market initially reacted to the Lisa Cook story, but those moves have largely been shrugged off because it's likely she will win the fight to reinstate her job, maintaining the Fed's status quo [2][3] - Trump's potential doubling down on attacks on Fed independence and credibility is an undermining of US institutions, ultimately bad for long-end yields, bonds, US stocks, and the dollar [4][5] Geopolitical & Trade Tensions - The trade war never really went away and is more accurately described as a US attack on the global trade system, which is likely to continue affecting businesses, consumers, and global growth [7][8] - The US is also discussing digital taxes, indicating that trade deals previously thought to be done may not be [6] Market Catalysts & Risks - Several negative catalysts are on the horizon, including Nvidia earnings, inflation data (core PC and CPI), and jobs data [9][10][11] - Weak jobs data could worry the market about a US recession, while strong data would undermine expectations of rate cuts, creating a lose-lose situation for stocks [10] - Historically, the equity market tends to decline in September [9]
Plenty of Negative Catalysts on the Horizon | Markets in 3 Minutes
Bloomberg Television·2025-08-26 07:42