Business
Does a Fed Interest Rate Hike Make Stocks Go Down?
The Federal Reserve’s expected rate hike is unlikely to hurt the stock market much—that is, if recent history is any guide.
The Fed has launched rate-hike campaigns six times since the mid-1990s. In most cases, stocks took a hit in the first four months after the initial rate increase, but then quickly recovered, according to an analysis by LPL Financial. The S&P 500 rose by an average of 10.7% in the 12 months after the first hike.
“The key lesson from these prior cycles is that rate hikes do not typically derail bull markets,” LPL chief equity strategist Jeff Buchbinder wrote in a recent note to clients.
You must be logged in to post a comment Login