Here is an overview of the Fed’s rate cuts and stock market performance from 2007 to 2008:
September 18, 2007: The Fed cuts rates by 50 basis points, but the Dow Jones Industrial Average (DJIA) still reaches the peak of the financial crisis on October 11.
October 31, 2007: The Fed cuts rates by another 25 basis points, and the US stock market plummets by more than 4%.
December 12, 2007: The Fed cuts rates by another 25 basis points, but the US stock market is mediocre.
January 22, 2008: The Fed cuts rates by a massive 75 basis points, and although the US stock market initially rises, it immediately gives up all the gains.
January 31, 2008: The Fed cuts rates by another 50 basis points, and the market reacts flatly.
March 19, 2008: The Fed cuts rates by another 75 basis points, and the market begins to recover, but then falls again.
May 1, 2008: The Federal Reserve cut interest rates by 25 basis points, and market sentiment fell into panic again.
