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The Fed's Interest Rate Cuts Foreshadowed the Stock Market Correction, and Here's What Might Happen Next

The Motley Fool
Summary
Nutrition label

81% Informative

The Fed has cut interest rates three times since September .

The benchmark S&P 500 index just entered correction territory after plunging by more than 10% from its recent record high.

Conventional wisdom suggests lower interest rates are great for stocks, but history tells a different story.

The Fed is holding its March policy meeting this week .

The unemployment rate came in at 4.1% in February , which is still quite low, but it has steadily ticked higher over the past year .

The University of Michigan U.S. consumer sentiment index fell to 57.9 in March , which was the lowest level since November 2022 .

Back then, the S&P 500 was in the throes of a bear market.

VR Score

85

Informative language

86

Neutral language

4

Article tone

semi-formal

Language

English

Language complexity

41

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

short-lived

External references

12

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