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Market Extra: Rate cut with stock market at all-time highs? It’s been done before — but here’s what’s different

Investors are puzzling over the apparent paradox presented by the combination of stocks trading at or near all-time highs and a Federal Reserve that appears ready to deliver an imminent rate cut.

Read:An economy gone ‘mad’? The Fed is going to cut rates despite record stock prices, low unemployment

A look back at history shows that the Fed has been willing to cut rates with stocks at or near all-time highs in the past, but it’s a phenomenon that hasn’t been seen in more than 20 years. Market analyst Charlie Bilello last week noted on Twitter that since the Fed started targeting the fed-funds rate in 1982, it has delivered rate cuts with the S&P 500 SPX, +0.02% at an all-time high seven times — the last such cut occurring in January 1996.

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