Sep 19, 10:24 AM

JPMorgan: S&P 500 Sees 25% Rally, Historical Patterns Show 15% Gain Post-Fed Rate Cuts Over 40 Years

JPMorgan reports that the S&P 500 has rallied by about 25% in the past year, significantly above its historical average gain of 4% in the 12 months before the first Federal Reserve rate cut. Historically, the Fed has cut rates 12 times in the past 40 years when the S&P 500 was within 1% of an all-time high. In each instance, the market was higher a year later, with an average return of around 15%, according to JPM DESK. While interest rate cuts may not impact S&P 500 performance as much as expected, positive earnings growth is a better indicator. When earnings grow, the S&P 500 returns 14% on average one year after rate cuts, but when they don't, there is not much appreciation.

#JPMorgan #Federal Reserve #Fed

Written with ChatGPT (GPT-4o).

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GURGAVIN@gurgavin
1 year ago
JP MORGAN SAYS OVER THE LAST 40 YEARS THE FED HAS CUT RATES 12 TIMES WITH THE S&P 500 BEGIN WITHIN 1% OF AN ALL TIME HIGHS THE STOCK MARKET WAS HIGHER A YEAR LATER EVERY SINGLE OF THE 12 TIMES WITH AN AVERAGE RETURN OF 15% $SPX
Wall St Engine@wallstengine
1 year ago
JPMorgan: "Over the past 40 years, the 🇺🇸 Fed has cut rates 12 times when the S&P 500 $SPY was within 1% of an all-time high. The market was higher a year later all 12 times, with an average return of around 15%."
Carl Quintanilla@carlquintanilla
1 year ago
JPM DESK: “.. Over the past 40 years, the Fed has cut rates 12 times with the S&P 500 within 1% of an all-time highs. The market was higher a year later all 12 times with an average return of around 15%.” 🇺🇸 #FOMC

JPMorgan: S&P 500 Sees 25% Rally, Historical Patterns Show 15% Gain Post-Fed Rate Cuts Over 40 Years

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