Will Markets Peak Out Before Rate Cut? Watch These Key Datapoints for Answers

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Will Markets Peak Out Before Rate Cut? Watch These Key Datapoints for Answers
Dow Jones Industrial AverageSPDR® Bloomberg High Yield Bond ETF
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For less than $8 a month, InvestingPro's Fair Value tool helps you find which stocks to hold and which to dump at the click of a buttonrate cut on September 18. With under a month to go, it's natural to be curious about what might happen next.

A big factor is whether the Fed is cutting rates in response to a recession or as a proactive move to normalize policy. Recession, in particular, is a wild card here.has risen in 16 out of 21 rate-cut cycles—about 76% of the time. When there's no recession, the average gain is around +11%. The last instance of a new high during a recession was in late 1982, which preceded a strong bullish market.remains near two-year highs, signaling a risk-on sentiment among investors. During times of fear and uncertainty, these bonds typically suffer.While history offers some guidance, the real impact of the upcoming Fed rate cut will depend on the current economic landscape and how investors react.

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