S&P 500 Performance Around Previous Fed Cuts

S&P 500 Performance Around Previous Fed Cuts This spreadsheet shows that the S&P 500 has performed well on average, around first Fed rate cut. Picture source: Barclays Research

Fed Rate Cut vs. ISM Manufacturing Index and ISM Non-Manufacturing Index

Fed Rate Cut vs. ISM Manufacturing Index and ISM Non-Manufacturing Index Since 1997, when the ISM Manufacturing Index is below 50 and the ISM Non-Manufacturing Index is above 52, the Fed is less aggressive, with about 68bp of easing on average. Picture source: Goldman Sachs Global Investment Research

Fed Rate Cuts Priced In and Recession

Fed Rate Cuts Priced In and Recession Insurance cuts or recessionary cuts? It usually doesn’t end well, when the bond market begins to price in more than three rate cuts over the next 6 months. Picture source: Societe Generale Cross Asset Research

U.S. Equities – One Year Return After a Fed Rate Cut

U.S. Equities – One Year Return After a Fed Rate Cut The chart shows how U.S. equities have historically performed after a 25 bps and 50 bps Fed rate cut over the last 35 years. You may also like “First Fed Rate Cut.” Picture source: Ycharts