| Autor: |
Goldfarb, Sam (AUTHOR), Huang, Vicky Ge (AUTHOR), Santilli, Peter (AUTHOR) |
| Předmět: |
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| Zdroj: |
Wall Street Journal - Online Edition. 9/24/2024, pN.PAG-N.PAG. 1p. |
| Abstrakt: |
The Federal Reserve's recent interest rate cut is having an impact on various markets, and investors are looking to historical data to predict future outcomes. Stocks and corporate bonds have historically performed well in the 12 months following rate cuts, but this depends on the overall state of the economy. If the cuts are not enough to prevent a recession, all types of investments tend to suffer. The yield on the 10-year Treasury note has historically increased moderately during rate cuts, reflecting investors' expectations for future rates. The S&P 500 index has historically performed well during rate-cutting cycles, and small companies with floating-rate debt tend to benefit the most. Corporate bond spreads have often narrowed after rate cuts, indicating a healthy economy, but can widen during a recession. The U.S. dollar tends to weaken during rate-cutting cycles, while gold tends to benefit from lower rates and economic uncertainty. [Extracted from the article] |
| Databáze: |
Regional Business News |
| Externí odkaz: |
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