The S & P 500 touched a record high on Tuesday , bringing its year-to-date gain to more than 18%.
The S & P 500 averaged a 5.5% gain in the first three months after an initial cut, 10.6% six months later and 11.3% one year out.
On average, the broader index jumped 10.2% three months later, 14.7% six months out and 18.6% one year afterward.
.SPX YTD mountain S & P 500, ytd Other investment banks have noted this discrepancy, with Bank of America Securities also highlighting the pattern in a recent note.
The worst-performing sectors 12 months after a rate cut were materials, utilities and consumer discretionary.
Persons:
Canaccord, Ohsung Kwon, Canaccord Genuity, — CNBC's Gabriel Cortes
Organizations:
Federal Reserve, Bank of America Securities