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The Stock Market Has Only Seen This 5 Times in 30 Years.

stock :: 2024-11-18 :: source - motley fool

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In September, the Federal Reserve started a new rate-cutting cycle, something the stock market has seen only five other times in the last three decades. Specifically, after raising the federal funds rate to a two-decade high to fight severe post-pandemic inflation, policymakers finally pivoted to interest rate cuts on Sept. 19.

The federal funds rate is a benchmark that impacts other rates across the economy, such as those for personal loans, credit cards, and mortgages. Policymakers reduce the benchmark rate to stimulate economic growth, which could logically translate into robust stock market returns.

Indeed, the broad-based S&P 500 (^GSPC -1.32%) and growth-focused Nasdaq Composite (^IXIC -2.24%) have historically performed well during the first 12 months of cutting cycles. That hints at a big move in 2025...Continue reading

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