Montreal Bank: After the Fed cuts interest rates, the US stock market often pumps.

[Montreal Bank: After the Fed cuts interest rates, the U.S. stock market often rises] According to market news released by *Walter Bloomberg, Montreal Bank Capital pointed out that after the Fed starts cutting interest rates, the U.S. stock market usually rises. Since 1982, in 10 interest rate cut cycles, the S&P 500 index recorded positive returns 8 times, with an average rise of 10.4% in the following year. However, the specific rise varies greatly, ranging from -23.9% to +32.1%, depending on whether the interest rate cuts extended the economic growth cycle or failed to prevent an economic recession. The Bank of Montreal stated that the current backdrop is more akin to those circumstances that yield positive returns: employment is still on the rise, GDP is above trend levels, and it is expected that the S&P 500 index's earnings will grow at a double-digit pace by 2026. The agency believes that the debate over the Fed's interest rate cuts "misses the point." Unless economic problems arise, the US stock market remains in a bull market - however, given the strong rebound that has already occurred, future rises may be smaller.