/biz/ - Business & Finance

>>57120720
Saxo just did a study
https://www.home.saxo/content/articles/equities/a-look-at-previous-fed-rate-cuts-and-what-it-means-for-equities-07122023


There have been 9 initial Fed rate cuts starting a rate cut cycle (shorter or longer) since 1 January 1985 and if we look at the S&P 500 performance during these periods then the US equity market tends to rise in the subsequent 3 months after a rate cut cycle has begun. Remember that with only 9 rate cut cycles the statistics here come with small confidence and investors should take note of the current situation instead of blindly trust history. The average S&P 500 gain during the 90 trading days after an initial Fed rate cut is 5.1% which is significantly above the normal 3-month S&P 500 return which is in the 2-2.5% range.