https://www.wsj.com/livecoverage/fed-interest-rate-cut-inflation-live-09-18-2024
U.S. stocks climbed after the Federal Reserve voted to cut interest rates by 0.5 percentage point, opting for a more aggressive reduction than investors had been anticipating just a week ago.
Though traders had anticipated a rate cut, they had been left guessing about the size of the move. A week ago, traders were fairly confident that the Fed would cut by the traditional 0.25 percentage point. That consensus vanished in recent days, with many expecting a larger cut, but there was still a large amount of uncertainty heading into the Fed’s decision.
For all the attention on the Fed, upcoming economic data could still play the biggest role in shaping markets. Stocks have historically performed well in the 12 months after the Fed has started to cut rates—unless the economy has entered a recession during that period.