Stock market has historically viewed soft employment data as positive (because it suggests rate cuts) and bond markets today are responding positively to weak jobs data with falling Treasury yields and rising gold/silver prices, but this historical pattern of rate cuts supporting stocks during recessions has broken down during major bubble bursts (tech 2000-2002, housing 2007-2009) when stock markets fell 50%+ despite aggressive Fed easing.

causalpending

Speaker

John Lara

Evidence Quote

there are times where rate Cuts do lead to stock market gains and and but there are the key distinction there if you go and parse the history is where valuations are and the most recent um major rate cutting episodes uh in response to the tech bubble and the housing bubble um were absolutely um accompani with very strong Market sell-offs over 50% declines

Source

What If A Coming Recession & Bear Market Are The LEAST Of Our Worries? | John RubinoAdam Taggart | Thoughtful Money®
Created: 8/10/2026, 11:15:06 PM

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