COTW: U.S. Stock Returns After the Fed Cuts Rates

COTW: U.S. Stock Returns After the Fed Cuts Rates

The Fed meets this week and is expected to at least telegraph rate cuts at either its July or September meetings, or both. The urgency of rate cuts is being hotly debated, but the consensus is that with growth slowing and inflation contained, the Fed needs to do something to support the economy and markets. There’s even an outside chance the Fed will preemptively cut this week. Whenever it comes, the cut will likely be the first of a series. This week’s chart shows how the S&P 500 has performed in the twelve months immediately following the first move of a rate-cutting cycle.

 

The chart below can be downloaded here

 

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