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Data: S&P 500 to Average 13.9% Increase Whenever Cumulative Rate Cuts Reach 2%
Summary: Analysts indicate that the US labor market is rapidly deteriorating, with recent data showing revisions of -258,000 jobs in just May and June, more than the total population of Scottsdale, Arizona. So far this year, 461,000 jobs have been cut in the US, with many leading indicators in the labor market collapsing. This suggests the ...
Analysts indicate that the US labor market is rapidly deteriorating, with recent data showing revisions of -258,000 jobs in just May and June, more than the total population of Scottsdale, Arizona. So far this year, 461,000 jobs have been cut in the US, with many leading indicators in the labor market collapsing. This suggests the Fed will lower interest rates to curb inflation, but as inflation rebounds, those without assets will face a situation similar to the post-pandemic era. Wage growth will lag behind inflation, widening the wealth gap. Historically, whenever the Fed has lowered rates to within 2%, the S&P 500 index has averaged a +13.9% increase in the following 12 months, leading to a celebration for asset owners like in 2021.
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Link: Data: S&P 500 to Average 13.9% Increase Whenever Cumulative Rate Cuts Reach 2% [Copy]
