RBC: When the Federal Reserve cuts interest rates in a non-recessionary period, the US stock market often rises.

In a report, Royal Bank of Canada capital market strategist wrote that the U.S. stock market typically rises in the year following a Federal Reserve rate cut, unless the cut happens during or before an economic recession. The team led by Lori Calvasina stated that historically, the median increase in the S&P 500 index in the 12 months following a rate cut is between 13% and 14%.