Will interest rate cuts continue the U.S. bull market? BMO: The rise of U.S. stocks can continue, but the increase is expected to be lower than the historical average

BMO Capital Markets Chief Investment Strategist Brian Belski pointed out that the Federal Reserve's interest rate cuts may extend the U.S. bull market, but future stock returns may be below historical averages. Since 1982, in the 10 cycles following interest rate cuts, the S&P 500 has achieved positive returns in 8 of them, with an average increase of about 10.4%. Belski emphasized that whether the stock market can rise strongly depends on whether the interest rate cuts can prolong economic expansion. BMO maintains a target price of 6,700 points for the S&P 500 by the end of 2025 and recommends increasing holdings in technology, financial, and consumer discretionary stocks