The key catalyst for short-term US stocks may shift back to AI, with the OpenAI Astra and Communacopia technology conferences potentially even more important than next week's inflation data. The market is currently overly optimistic about economic growth, thus reducing its tolerance for weaker-than-expected growth. Further boosting risk appetite depends more on interest rate cuts. If the Strait of Hormuz reopens, energy prices fall, and US inflation continues to improve, a more favorable environment of "decent growth and cooling inflation" will be created. Conversely, weaker-than-expected economic growth or new geopolitical shocks may have a greater impact on the market. (The above views are from a Goldman Sachs report dated September 6th.)
