"The Fed shocks the world!

Four sudden interest rate cuts
Stock Market Horror:
big pump, big dump to Rebound
Review of interest rate cuts:
At the beginning of 2001, on January 3rd, the Fed unexpectedly cut the Interest Rate by 50 basis points.
On January 22nd, during the 2008 financial crisis, the Federal Reserve took emergency action and cut interest rates by 75 basis points in response to the crisis.
After many years, on July 31, 2019, the Federal Reserve announced its first interest rate cut since 2008, by 25 basis points.
In 2020, the COVID-19 outbreak occurred, and the Federal Reserve took decisive action on March 3rd and March 15th, cutting interest rates by a total of 150 basis points to stabilize market confidence.
Changes in the performance of US stocks after interest rate cuts:
Case in 2001: The Nasdaq index soared 14.2% on the day of the interest rate cut announcement in a short period of time.
However, this momentum failed to sustain and the stock market continued to hit new lows in the following months.
Throughout the year, the NASDAQ index suffered a heavy setback, with a cumulative decline of nearly 20%.
2008 crisis: The S&P 500 index saw a brief 5.4% pump on the day of the rate cut, but the market subsequently plunged into depth turmoil.
Throughout the year, the S&P 500 index dropped by 38%, reflecting the serious impact of the financial crisis.
Turning Point in 2019: Despite a slight pullback in the S&P 500 on the day of the rate cut, the market gradually rebounded in the following months.
At the end of the year, the S&P 500 index showed a rise of nearly 29%, demonstrating the recovery of market confidence and the rise of power.
2020 pandemic challenge: In the face of market panic caused by the pandemic, even with the Fed's two emergency rate cuts, the S&P 500 index still faced heavy pressure in the short term, bottoming out in mid-March.
However, thanks to strong fiscal and monetary policy support, the stock market rebounded strongly in the second half of the year, and the S&P 500 index achieved a positive rise of 16% for the whole year.
The pressure on the Fed is high this time, and a 50 basis point rate cut may not be enough.
Powell's pressure is coming. The US stock market will open tonight. I don't know if it will be generally direct or go deep V.