How stocks perform in the face of Fed hikes
On Wednesday, the Federal Reserve announced its first rate hike
since 2018, a quarter-point move that’s expected to be followed by more tightening as the year progresses. The prospect of the Fed raising rates has been weighing on financial markets recently, along with the Ukraine War, the pandemic and inflationary pressures. But data compiled by LPL Financial and Bloomberg show the stock market has coped well in the face of Fed tightening cycles in the past. Click through to see how the S&P 500 has performed in every year the Fed has raised interest rates since 1970.
Sources: LPL Financial, Bloomberg