This article uses auto-translation in some parts.
The Federal Open Market Committee (FOMC) announced a 50bp rate cut on the 18th, signaling the start of a rate-cutting cycle. In addition, the Federal Reserve Board (FRB) hinted at the possibility of further interest rate cuts, raising expectations that the USA can avoid an economic downturn, boosting investor risk appetite. On September 19, the Dow Jones and S&P 500 hit record highs, with many other indices also sharply rising.
According to data compiled by moomoo, if a post-rate-cut economic downturn does not occur, the S&P 500 tends to perform well.
Solita Marcelli of UBS stated, 'Looking back at history, when the FRB starts cutting rates and the US economy avoids a recession, the stock market tends to perform well. There is a high likelihood that a similar trend will occur this time, with the S&P 500 expected to rise to 5,900 points by the end of the year and 6,200 points by June 2025.'
Additionally, Fawad Razaqzada of City Index and Forex.com mentioned that the S&P 500 experienced temporary fluctuations after the FRB announced a rate cut...