Search Results for: fed rate

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 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 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…

The Market Has Correctly Called Each Fed Rate Decision since 2010 And since 1994, seven days before a FOMC meeting, the market has been accurate 95% of the time. See also “The Fed Funds Market Is Rarely Wrong About the Next FOMC Meeting.” Picture source: Deutsche Bank

Dow Jones Industrial Average Around First Fed Rate Cut After first Fed rate cut, the Dow Jones Industrial Average’s gains are +24% on average when no recession, and +11% with a recession within 12 months. Picture source: Ed Clissold