Rate cut is bullish for markets – S&P 500 has been higher on a 1, 3, 6 and 12-month basis in each of the last five easing cycles, according to JPMorgan. If the economy does not enter a recession, S&P 500 typically up 17% in the first 12 months. During this period, earnings drove a bulk of the gains and defensives outperformed

ASX 200 performance post-Fed rate cuts has been mixed, with better outcomes when cuts address growth concerns rather than major economic crises.

The S&P 500 surged to a record high close on Thursday, the day after the Federal Reserve cut interest rates by 50 basis points and indicated more rate cuts were on the horizon. The blue chip Dow Jones Industrial Average also registered a record closing high,

The Dow Jones and the S&P 500 surged to all-time highs in the wake of the Federal Reserve's announcement that it was lowering interest rates by half a percentage point.

Federal Reserve rate cuts typically deliver big S&P 500 gains over the next six and 12 months. Don't fight the Fed, but be ready for a surprise.