Stocks have historically reacted well to Fed rate cuts. Since 1971, the first Fed cut has led to positive returns for investors 100% of the time in the next six months, with an average gain of 13%, according to Fundstrat's Tom Lee.

Wall Street is holding near its records after the Federal Reserve kicked off its efforts to prevent a recession with a bigger-than-usual cut to interest rates.

Over the past couple of years, the US economy has wrung out inflation like dirty mop water from just about every sector — except for the housing market, which remains paralyzed by high prices and chronically low supply.