Keyword: Fed rate cut

Range of Returns Two Years After Fed Rate Cut Historically, equities rally significally, when the Fed eases during soft patches. Image: Barclays Research

Break-Even Inflation Rate On 10-Year TIPS and Fed Rate Cut (Hike) If inflation expectations continue to fall or remain low, the Fed could probably cut rates further. Image: Gavekal

Fed Rate Cuts and Business Cycle Similar Fed rate cuts in the 1990s should be enough to prolong the business cycle, and should be positive for stocks. Image: LPL Financial LLC

U.S.: Market Odds of A Fourth Rate Cut The Fed may be inclined to press the pause button in the “mid-cycle” policy easing. Image: Oxford Economics

Average S&P 500 Performance Following 3rd Fed Rate Cut In the Fed rate cutting cycle, the chart shows the average S&P 500 performance following a 3rd Fed rate cut, with less than two additional cuts, and two or more additional cuts. Image: Strategas

S&P 500 Index Pre and Post Fed Rate Cuts This chart shows what the market has done every time the Fed cut rates since 1984. Image: UBS

Dow Jones Industrial Average Around Second Fed Rate Cut This chart shows that a second rate cut has been bullish. On average, the Dow Jones Industrial Average has gained 19% over the next 12 months. Image: Ned Davis Research

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. Image: Goldman Sachs Global Investment Research

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. Image: Societe Generale Cross Asset Research

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.” Image: Ycharts