Policy Makers: Midcycle Adjustment and Powell Co

policy makers: Live blog Fed decision and Jerome Powell press conference The Dow Jones Industrial Average DJIA, 0.00% fell more than 300 points at its low and lost 1.2% on the day, while the S&P 500 SPX, -0.73% shed 1.1% after Powell said the Wednesday move wasn't the beginning of a lengthy cycle of rate cuts and described the move as a midcycle adjustment, according to Market Watch. The lack of urgency appeared to disappoint investors looking for a more sustained drop. He has had two winning days out of the past 11 meetings, with the only positive gains for the market coming in January when policy makers paused a string of rate increases, Market Watch's William Watts has noted, and last month when Powell & Co. set the stage for Wednesday's move. Near-term reaction aside, how does the market tend to perform in a rate-cut regime First the good news Markets, as would be expected, tend to rally after rate cuts, because those policy actions translate into lower borrowing costs for individuals and corporations and tend to support higher moves for stocks. One-month later, the broad-market benchmark is 0.57% higher. Caption outside of wrapper for normal article images S&P 500 usually pops after cuts In fact, since 1990, the S&P 500 has gained on average 0.16% on the day of a 25-basis-point cut. (news.financializer.com). As reported in the news.