Monetary policy: Very accommodative

How US sectors performed when Fed policy was very accommodative

Since Jan 3, 1983, the record reads this regime on 18% of trading days, across 53 episodes with a typical run of 15 sessions. Across those sessions since Dec 22, 1998, Energy did best at +15.5% a year and Utilities did worst at +3.8%, against +9.9% for the S&P 500.

Figures as of Sep 23, 2026 · recomputed every trading day

The regime in the record

Share of trading days
18%
Separate episodes
53
Typical run
15 sessions
Longest run
215 sessions
Last seen
May 5, 2022
Today
Not in force

Sector by sector

Annualised mean return on the session after each regime day. Sorted by the regime figure.

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
Communication Services XLCsince 2018+16.8%+12.3%-4.2%55%27.9%455
Energy XLE+15.5%+10.2%+5.7%51%34%1,982
Real Estate XLREsince 2015+13.9%+5%-7.8%55%28.8%551
Information Technology XLK+13.8%+12.4%+3.9%53%25%1,982
Consumer Discretionary XLY+13.6%+10.4%+3.7%54%24%1,982
Health Care XLV+13.1%+8.5%+3.3%53%19.3%1,982
Industrials XLI+11%+9.4%+1.2%53%23.9%1,982
Materials XLB+9.1%+8.5%-0.8%52%26.3%1,982
Consumer Staples XLP+8.1%+5.3%-1.7%53%16.2%1,982
Financials XLF+7%+7.8%-2.9%52%31.7%1,982
Utilities XLU+3.8%+5.4%-6%52%21.9%1,982

Context

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
S&P 500 SPY+9.9%+10.2%—55%21.8%1,982
Nasdaq 100 QQQsince 1999+17.2%+13.4%+7.4%55%24.3%1,982
Russell 2000 IWMsince 2000+12.4%+9.8%+2.5%54%26.4%1,982
Long Treasuries TLTsince 2002-4.6%+1%-15.1%50%15.6%1,968
Gold GLDsince 2004-4.3%+11.7%-14.2%51%19.6%1,853

How this regime is defined

Monetary policy reads Very accommodative in the daily regime record.

Method and limits

Descriptive statistics over the published regime record — not a backtest, a forecast or advice. Each regime day is credited with the NEXT session's return, so a regime never earns the move that revealed it. Returns are ETF price returns (dividends excluded), annualised as 252 × the mean session return; volatility likewise. Sector funds start in December 1998 (Real Estate in 2015, Communication Services in 2018); the regime record starts in 1980. Labels are the engine's as currently published and are recomputed when its method improves. A figure with fewer than 60 sessions is not shown.

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Questions

Which sectors did best when Fed policy was very accommodative?
Energy +15.5%, Information Technology +13.8%, Consumer Discretionary +13.6%. Annualised mean next-session returns since Dec 22, 1998; the S&P 500 returned +9.9%.
How common is this regime, and how long does it last?
It appears on 18% of trading days since 1983, in 53 separate episodes. The typical run is 15 sessions; the longest lasted 215 sessions.
Is this regime in force today?
No. It was last seen Apr 8, 2022 – May 5, 2022. The daily nine-axis reading is on the Regime Radar.
Is this a backtest?
No. It describes how assets behaved on the session after each day the regime was read, with no portfolio, costs or selection. A backtest would test a rule; this records a history.