S&P 500 Pre and Post Fed Rate Cuts

S&P 500 Pre and Post Fed Rate Cuts The performance of the S&P 500 following the Fed’s first rate cut has historically been robust, but this trend is closely tied to the state of the U.S. economy, particularly regarding the risk of recession. Image: Goldman Sachs Global Investment Research

Market Pricing of Fed Rate Cuts

Market Pricing of Fed Rate Cuts BofA expects the Fed to cut another 75bp this year, consistent with market pricing, particularly in light of recent economic conditions and the Fed’s recent decision to cut rates by 50bp. Image: BofA Global Research

Number of Trading Days Since Last Fed Rate Cut

Number of Trading Days Since Last Fed Rate Cut The Fed’s recent decision to cut interest rates for the first time in four years, in response to changing economic conditions, marks the second-longest wait for such a reduction in history. Image: Morgan Stanley Wealth Management

Fed Rate Cuts

Fed Rate Cuts Goldman Sachs forecasts a series of 25bp interest rate cuts through mid-2025, aimed at supporting economic growth amid fluctuating inflation rates. Image: Goldman Sachs Global Investment Research

Factor Performance Prior and After the First Fed Rate Cut

Factor Performance Prior and After the First Fed Rate Cut Historically, the first rate cuts by the Federal Reserve during easing cycles have tended to favor Growth over Value, Small over Large, and Bonds over Stocks. Image: BofA US Equity & Quant Strategy

Median Index Returns Following First Fed Rate Cut

Median Index Returns Following First Fed Rate Cut Historically, midcaps have outperformed the S&P 500 and the Russell 2000 in the three and twelve months following the initial Federal Reserve rate cut. Image: Goldman Sachs Global Investment Research

Probability of Fed Rate Cut

Probability of Fed Rate Cut With U.S. inflation and the labor market showing signs of cooling, should investors and traders expect three 25bps Fed rate cuts by the end of the year? Image: The Daily Shot

10-Year/2-Year Treasury Yield Curve Around First Fed Rate Cuts

10-Year/2-Year Treasury Yield Curve Around First Fed Rate Cuts The U.S. yield curve typically steepens once the prospect of interest rate cuts by the Fed becomes more imminent, rather than when the Fed actually stops hiking rates. Image: Goldman Sachs Global Investment Research

Fed Rates Cut

Fed Rates Cut Since the Fed’s last hike in July 2023, their ongoing 10-month pause is exceeding the average duration. Extended periods of “higher for longer” policies often lead to unfavorable outcomes. Image: Morgan Stanley Wealth Management