The direction of interest rate movement is of primary importance to the stock market. The rate cut by the Fed last week was a good example of what can happen when the market wants some good news and responds with big bump.

Although timing the market is usually not a good idea for long-term investors, it makes sense to be aware of upcoming events that are likely to move the market.

If you were planning to sell and knew the Fed was planning a rate cut, you should hold off until after the announcement to pick up any bounce. Of course, if a rate hike was anticipated, you might want to sell before the announcement.

In many cases, the market prices a rate hike or cut in advance of the actual event, so there is often little change in the market. However, when the market is particularly volatile, the rate cut or accompanying statement can move prices significantly.