Recent discussions have centered on the historical impact of Federal Reserve rate cuts on stock performance, particularly the S&P 500. Analysts noted that after the first rate cut, if the economy avoids a recession, the S&P 500 typically sees an average gain of approximately 12.5% over the ensuing year. Conversely, if a recession occurs, the index tends to experience average losses of around 13%. The context for these observations comes amid speculation about a potential rate cut by the Fed, with various experts weighing in on the implications for the market.