Posted 11/22/2023, 3:09:00 PM
S&P 500 Could See Double-Digit Gains in 2023 After End of Fed Rate Hikes
- S&P 500 typically rallies double-digits the year after Fed stops hiking rates, with averages gains of 17.4%
- Rally of 35.2% in 1995, 20.7% in 2006, and 27.9% in 2018 after end of previous Fed rate hike cycles
- If history repeats, S&P 500 could rally 17% through first half of 2024 after recent supposed end to hikes
- Returns mixed in months after initial Fed rate cuts, with strong rally in month after cut
- Factors like 9/11 and 2008 crisis led to losses in year after cuts, unlike gains after 2019 cut