The People's Bank of China (PBOC) is out with new stimulus measures in its latest effort to recover its struggling economy. Interactive Brokers chief strategist Steve Sosnick joins Catalysts to discuss the move and how US investors should navigate the market in the second half of the year.

"There's certainly concerns that the Chinese economy has been under a lot of pressure, much more than they might be letting on because there's always been rumors that their numbers are a bit massaged. And the fact that they're willing to undertake, sequential, large measures to stimulate the economy is a sign that certainly at least the powers in charge in Beijing are a bit nervous," Sosnick tells Yahoo Finance.

He argues that US investors should be rooting for China's economy because if they fail, it will have serious ripple effects on the global economy. "I think we have to remember how in the aftermath of the global financial crisis, one of the things that helped us dramatically was that the Chinese economy was expanding so rapidly. And as a result, it had spillover effects into the rest of the world. The flip side is if their economy shrinks dramatically, that will also have spillover effects into the rest of the world," he explains.

Sosnick believes that Friday's Personal Consumption Expenditures (PCE) data will be the next big catalyst for the market. Investors will gain key insight into the state of inflation. After the PCE print, markets will receive jobs data, which will also be crucial as the labor market is experiencing weakness.

He argues that investors should consider value stocks with high dividends over growth stocks at this point in time, explaining, "If you're looking at a potentially lower interest rate environment, it's not a bad idea to lock in decent yields."

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Melanie Riehl