Fed ‘insurance’ rate cuts while the economy is fine usually boost the stock market, history shows

When the central bank cuts interest rates as a preventative measure, U.S. equity markets have historically done very well.  So-called “insurance ” rate cuts with a backdrop of strong growth — which happened in 1995 and 1998 — resulted in solid equity market performance, according to analysis by J.P. Morgan. But not all rate cuts are created equal.