If it keeps going down interest rates will be cut slowly again.
You seem to be certain of that. I am not, though I do think it is likely to happen, not because it solves anything, but because when the only tool you have is a hammer, then every problem looks like a nail. The current downturn (forget about the stock market, look at airlines, and the entire manufacturing supply chain) isn't that much of a demand shock, it's a supply shock. How do lower rates solve that?
There have been other such risks and markets went down and the issues got sorted and then we were back on track.
Could you please name a recent similar shock?
Also, to what extent are we going to ignore fundamentals? Stock price appreciation can come from one of two reasons: either earnings growth or multiple expansion. Historically speaking, multiples are high. While earnings can grow for a while in excess of GDP growth, they should eventually revert to the mean. So with real warnings about earnings being lower due to the supply disruptions, and multiples at already elevated levels, where does price appreciation come from?