1. S&P 500 typically gains modestly on December Fed days, averaging 0.2%. 2. Last December's Fed meeting caused the largest decline for S&P on a Fed day. 3. Expectations for a 25 basis point rate cut are prevalent among investors. 4. S&P 500 has shown less volatility on recent Fed announcement days. 5. Current annual gain for S&P 500 is 16.4% year-to-date.
FAQ
Why Bullish?
Given historical patterns, a modest gain on Fed days often supports bullish sentiment. Last year's anomaly suggests an atypical response which might stabilize this time.
How important is it?
Fed interest rate decisions are central to market valuation, impacting investor sentiment significantly.
Why Short Term?
Immediate market reactions to Fed decisions influence short-term movements. Historical responses indicate potential quick gains post-announcements.