What Happens to Stocks When the Fed Hikes: A Historical Guide
- S&P 500 usually has higher returns 12 months after first hike
- Stocks poised for more swings as Fed grapples with oil’s surge
This article is for subscribers only.
The S&P 500 Index is off to its worst start to a year since the Covid-fueled selloff in March 2020, and now investors have to contend with rising interest rates possibly starting at Wednesday’s Federal Reserve meeting.
Over the past two years the stock market has managed to rise in the face of the worst global pandemic in a century, one of the most divisive presidential election in U.S. history and the Capitol being attacked by Americans upset over the results of that election. Now it’s facing the largest ground war in Europe since World War II, and the fastest inflation since the 1980s.