Stocks: Wall Street strategists say growth will outpace Fed interest rates for rally

The size of the Federal Reserve’s long-awaited rate cut this week is less relevant to shares than the health of the US economy, top Wall Street strategists said.

The Fed is expected to ease policy for the first time in four years on Wednesday, as investor bets suggest between a 25 basis point cut or a larger 50 basis point cut. Expectations of easing and a so far robust economy have fueled gains of more than 30% in the S&P 500 since November, with investors now assessing whether the U.S. can avoid a recession after years of high interest rates.