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Why investors need to stop obsessing over when the Fed is going to cut interest rates next

Why This Matters

Higher rates, in fact, can be positive for the stock market.

July 9, 2025
10:08 PM
2 min read
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Advanced ➔ Results FA CenterWhy investors need to stop obsessing over when the Fed is going to cut interest rates nextHigher rates, in fact, can be positive for the stock marketLast d: July 9, 2025 at 6:08 p.

ETFirst Published: July 9, 2025 at 7:35 a. ETResizeListen(3 min)There’s no consistent pattern to how the stock market reacts when the Fed lowers rates. Photo: Getty ImagesInvestors in U.

Stock need to stop obsessing when, and by how much, the Federal Reserve will cut interest rates. That’s because there’s no consistent pattern to how the stock market reacts to Fed rate cuts.

Sometimes the market will rally in the wake of a cut and sometimes not. Its response is no different than the stock market’s long-term average.

The Author Mark HulbertMark Hulbert is a columnist for MarketWatch. His Hulbert Ratings service tracks investment s that pay a flat fee to be audited.

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FinancialBooklet Analysis

AI-powered insights based on this specific article

Key Insights

  • The Federal Reserve's actions could influence market sentiment across sectors
  • Financial sector news can impact lending conditions and capital availability for businesses

Questions to Consider

  • How might the Fed's policy stance affect borrowing costs and economic growth?
  • Could this financial sector news affect lending conditions and capital availability?

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