Here’s how the stock market tends to perform after a Fed rate cut

The Federal Reserve, as was widely expected, cut benchmark borrowing costs for the first time in more than a decade Wednesday afternoon — but the cut appears unlikely to improve Jerome Powell’s less-than-stellar stock-market record?

In fact, since 1990, the S&P 500 has gained on average 0.16% on the day of a 25-basis-point cut. One-month later, the broad-market benchmark is 0.57% higher. Double that cut and the market is 0.34% higher on the of the decision day and 1.25% higher a month later. A 75-basis-point reduction has resulted in a powerful 2.76% rally on average but 0.27% gain in the following 30-day period.

Cuts of 50-basis points and greater all resulted in losses in the coming quarter and half-year period, as the following table shows:

StockMarket already factored in 0.50% ratecut, so even if FED would cut it by 0.50% it would not resulted in $DJI or $SPX to go up. $DJI or $SPX was going up on promises of ratecuts since December 24, 2018 crash How long would 0.25% cut hold the Market before next Crush?

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Here’s how the stock market tends to perform when the Fed cuts ratesThe Federal Reserve is widely expected to cut benchmark borrowing costs for the first time in more than a decade on Wednesday.
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Dow, S&P 500 fall after after Fed rate cut, but stock market breadth remains positive.The Dow Jones Industrial Average sank to a triple-digit loss in afternoon trading Wednesday, after the Federal Reserve's decision to cut its target on... Quater point won't do it. .75%(at least) has already been priced in. Keep blowing J.P. StockMarket already factored in 0.50% ratecut, so even if FED would cut it by 0.50% it would not resulted in $DJI or $SPX to go up. $DJI or $SPX was going up on promises of ratecuts since December 24, 2018 crash How long would 0.25% cut hold the Market before next Crush?
منبع: MarketWatch - 🏆 3. / 97 ادامه مطلب »