S&P 500 Has Rallied on Day of Every Fed Rate-hike Decision in 2022. Could It Happen Again This Time?
The previous four times the Fed raised interest rates in 2022 - March 16, May 4, June 15 and July 27 - the $S&P 500 Index(.SPX.US$ rallied 2.2%, 3%, 1.5% and 2.6%, according to Dow Jones Market Data.
Could it happen again on Wednesday?
Those bounces have so far proved fleeting, with the S&P 500 down more than 19% for the year to date. In fact, the Fed's aggressive tightening of monetary policy as it attempts to tame inflation gets much of the blame for the market's downturn in 2022.
Higher rates can incentivize investors to sell assets and to take profits in the stock market. But recent analysis conducted by Dow Jones Market Data showed that during the most recent five long-term rate hike cycles, the three leading US stock market indexes only declined during one period.
The S&P 500 saw a median increase across all five cycles of 30%, while the $Nasdaq Composite Index(.IXIC.US$ delivered a median gain of nearly 27% and the $Dow Jones Industrial Average(.DJI.US$ delivered a median increase of 17.4%.
Mooers, do you think the stock market could rally again after Fed interest rate decision this time?
Mooers, do you think the stock market could rally again after Fed interest rate decision this time?
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Lookforwardagain : Agreed with article above.
Joejj : You say already then jinx it.
good Otter_7950 : Presently, the state have not gain back the power that they had before. this 'play' may continue till all cards is in hand.
TanJames6 : Buy option
FattAgain69 : Not likely. Previous rises could be confirmation to relief from uncertainty and when market is optimistic that upturn is near. The Fed has been very clear on its decision of the hikes and upturn won't be near till it has done its job.
eldemoniodejaime : Key word “could”
of course yes