Whenever the Fed cuts interest rates, the stock market goes up.
But what happens if the market is already at all time highs?
Will The Fed Really Cut Rates With Stocks Near New Highs? [Carson Group] – “The market-based pricing suggests there is currently a little less than an 85% chance of a rate cut at the next Federal Reserve Bank (Fed) meeting in four weeks. If you remember last year around this time, we noted that a rate cut with the S&P 500 near all-time highs is rather rare, but that doesn’t mean it isn’t possible. In fact, the Fed cut rates thrice last year with the index near all-time highs (in September, November, and December). The good news is rate cuts near all-time highs have seen stocks higher a year later 20 out of 20 times and when last year’s cuts reach the one year mark, we could have 23 out of 23. In other words, if the Fed cut rates in September and the S&P 500 is still be near new highs, it could be another positive driver for stocks.”
oh good!