S&P 500 Index: Recession Rate Cuts vs. Precautionary Rate Cuts

S&P 500 Index: Recession Rate Cuts vs. Precautionary Rate Cuts This chart shows what the U.S. market has done after first Fed cut in a business cycle. The current path follows precautionary rate cuts and does not suggest an imminent recession in the U.S.. Image: UBS

Fed Rate Cuts and Business Cycle

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

S&P 500 Index Returns After Three 25 Basis Point Rate Cuts

S&P 500 Index Returns After Three 25 Basis Point Rate Cuts After three rate cuts of 25 basis points in 1975, 1996 & 1998, the S&P 500 was, on average, up more than 10% six months later and 20% one year later. Image: LPL Financial LLC

Average S&P 500 Performance Following 3rd Fed Rate Cut

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