Michael Wilson, equity strategist at Morgan Stanley, recognizes that it’s a bit of both. In a note published Monday, he says that traders at the end of last week wanted to see that the previous soft jobs report was somewhat of an aberration,

This time may differ despite the Fed's poor track record of avoiding recessions with rate cuts. Stocks are usually higher, and bond yields are lower after lowering rates.

"Prior bull steepening environments have not been friendly to buy and hold stock investors," says RIA Advisors' Michael Lebowitz.

While some on Wall Street think stocks are spring-loaded for gains after the Fed cuts interest rates, JPMorgan has a more measured view.

A Federal Reserve interest-rate cut in September now looks like a virtual certainty. But how stocks might react to such a move remains as murky as ever.

To thwart that possibility, the Federal Reserve stands poised to lower interest rates, providing stimulus to consumers and businesses, some of whom have been reeling despite overall economic growth. Will lower interest rates be enough to put a floor under the economy and turn things around,

The dollar snapped back against the yen and other major currencies on Monday after losses last week, as investors looked ahead to key U.S. inflation data and reduced expectations for an outsized Federal Reserve interest rate cut next week.

A BCA Research analyst warns that the US Federal Reserve's delayed interest rate cuts may lead to a recession. Despite market forecasts hinting at potential rate cuts in September, concerns remain about economic instability.