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

First Fed Rate Cut

First Fed Rate Cut History tells us that a first 25-bps rate cut is bullish, while a first 50-bps rate cut is bearish. Picture source: Ari Wald

S&P 500 Index Returns After Fed Rate Cuts Near New Highs

S&P 500 Index Returns After Fed Rate Cuts Near New Highs The adage of “don’t fight the Fed” may be too simplistic, but usually, the market doesn’t care too much about other things, as long as the Fed stays dovish. Picture source: LPL Financial LLC

S&P 500 Index Price Average Before and After Initial Fed Rate Cut

S&P 500 Index Price Average Before and After Initial Fed Rate Cut Historically, the S&P 500 Index has risen in 13 out of 16 cases after an initial Fed rate cut (since 1954). The divergence between the S&P 500 and EPS suggests that the market doesn’t care too much about other things, as long as…