Federal Reserve Chair Jerome Powell discusses the stock market’s reaction to rate cuts, showing that in 40% of cases since 1980, the market was lower a month later. The correlation between S&P 500 and fed-funds rate odds suggests a post-rate-cut downturn could occur. Investors should be cautious about Fed rate cuts as they may be bearish.

After President Trump announced a pause on tariffs, the S&P 500 surged 9.5% and the implied fed-funds rate jumped. Investors should scrutinize widely-held beliefs and be prepared for potential market downturns following rate cuts. Statistical analysis shows that the market may perform poorly if the Fed cuts rates this month, challenging common assumptions.

Read more at Yahoo Finance: What investors should expect from stocks after the Fed’s September meeting