People often say that when the Fed lowers interest rates, the US stock market will experience a big dump. Historical data does show this situation, but many people actually misunderstand the cause-and-effect relationship. Why? Because in most cases, the Fed lowers interest rates only when the economy is in trouble or facing a financial crisis to stimulate the market. What truly causes the US stock market to fall is the underlying economic weakness, not the rate cuts themselves.

The effect of interest rate cuts is essentially to lower financing costs and stimulate investment and consumption. Logically, it should be beneficial to the stock market, but because most interest rate cuts occur in bad environments, it creates the illusion that "interest rate cuts must lead to a fall."
The situation in September is quite special. The U.S. economy has not fallen into recession; instead, it is expanding, while capital expenditures related to artificial intelligence have increased significantly, and corporate profit expectations are also rising. In this context, interest rate cuts are more likely to be a driving force for the market rather than a signal of crisis.
If we look at historical data, since 1990, when the Fed cuts interest rates at high points of the S&P index, the market returns in the following year are usually positive. This means that when interest rate cuts occur during a growth phase rather than a crisis phase, the market tends to continue to rise.
So my judgment is: this time in September, the interest rate cut should not overly worry everyone about "the U.S. stock market will fall"; instead, it is more likely to become a catalyst for an increase. We must avoid being misled by the superficiality of history and understand the true logic in order to seize market opportunities.