As the Federal Reserve transitions from a restrictive monetary policy to a more accommodative stance, investors are questioning how this regime change will impact various asset classes.

The central bank's shift towards lower interest rates can have far-reaching implications across equities, bonds, and other markets.

Historically, stocks have tended to perform well following the Fed's initial rate cuts—but with a crucial caveat: the economy must avoid slipping into a recession. An analysis by Goldman Sachs reveals that the S&P 500 has experienced significant declines even after rate cuts if the U.S. economy entered a...