The broad market index has historically pulled back after the central bank's initial rate decrease, data shows.
Investors have long been hoping that the Federal Reserve will start cutting interest rates, but data shows that that outcome could create trouble for the equity market. On average, the S & P 500 is usually up 2% 65 days before the first cut from the central bank following a hiking cycle, according to data from Strategas. But it's usually down by 1.5% 65 days after that initial rate reduction, implying that stocks may not be off to the races after the big announcement.
Fed funds futures indicate a chance of at least one rate cut as early as September, with the potential for a second at the last meeting of the year in December, according to CMEGroup's FedWatch tool . Hopes for lower rates in the near term were lifted last week as data on consumer and wholesaler inflation showed indications of cooling. May's consumer price index came in flat from the prior month, while wholesale prices unexpectedly slipped 0.2%.
S&P 500 Index Economic Events Prices Stock Markets Investment Strategy Business News
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
2024 Indy 500 Blog: Josef Newgarden wins the 108th Running of the Indianapolis 500Heavy rain Sunday morning caused a delay in the start of the 108th Running of the Indy 500.
Read more »
Dow slides 500 points, S&P 500 retreats from record while Nasdaq hits new heightsSamantha Subin is a digital news associate with CNBC.
Read more »
IndyCar moves to Fox Sports in 2025 after 16 seasons with NBCFox now has Daytona 500 and Indy 500
Read more »
2024 Indy 500 Picks, Predictions, and Race PreviewIndy 500 picks, predictions for 2024 Indianapolis 500. Indy 500 best bets for May 26 from Indianapolis Motor Speedway.
Read more »
2024 Indy 500 Picks, Predictions, and Race PreviewIndy 500 picks, predictions for 2024 Indianapolis 500. Indy 500 best bets for May 26 from Indianapolis Motor Speedway.
Read more »
S&P 500 falls as investors try to shake off sluggish start to June: Live updatesThe S&P 500 fell slightly Tuesday as Wall Street looked to find its footing after an uneven start to the month.
Read more »