1. ECB hints at possible further rate cuts if inflation hits 2%. Global outlook appears encouraging. 2. Lower rates could improve global liquidity, indirectly benefiting S&P 500 performance.
ECB rate cuts can lower borrowing costs internationally, historically boosting investor sentiment and supporting market rallies, as seen in past coordinated easing episodes.
While the ECB policy signal primarily impacts Europe, its spillover into global liquidity and risk appetite can indirectly affect the S&P 500, though the effect remains moderate.
Monetary policies influence economic fundamentals over extended periods; similar past cycles had prolonged market effects.