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U.S. Stocks Historically Deliver Strong Gains in Fed Hike Cycles

  • S&P averages 9% return in 12 rate-rising cycles since 1950s
  • Midterm elections can add to volatility but also be a boon
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JPMorgan's Michele Calls for Eight Rate Hikes in 2022

As the Nasdaq 100 comes off its worst week since the pandemic selloff in March 2020, investors now have to contend with Wednesday’s Fed meeting, where officials are expected to signal that they’ll raise interest rates in March and shrink their balance sheet soon after.

Here’s a look at how the U.S. stock market has fared historically when the Fed begins tightening rates.