The biggest gains, however, tend to come after the Fed begins cutting rates following a stock market panic. Following the first Fed rate cut in March 2020 due to the COVID pandemic, the S&P 500 was up over 27% in the next 12 months. Meanwhile, following the rate cut after the Sept. 11, 2001, market crash, the S&P was nearly 21% higher a year later.

The S&P 500 will remain in focus on Thursday after the index closed slightly lower following the Federal Reserve’s decision to slash its benchmark rate by 50 basis points. Monitor these important chart levels.

Wall Street's main indexes slipped on Friday as investors held back after a rally in the previous session that was sparked by an oversized interest rate cut by the Federal Reserve. The S&P 500 and the Dow hovered near their record highs and were on track for weekly gains of over 1%,

Wall Street is wrapping up the week by digesting the Federal Reserve’s decision for a half-point cut in interest rates, and Wells Fargo has a roundup of S&P 500 (SP500) sector returns 12 months after policymakers start easing cycles.